Summary: | Renewable industry, especially biodiesel industry, has been growing rapidly. This
is true either in the context of the prospect of renewable energy in domestic
market or increasing demand of Indonesian biodiesel in foreign market. PT. ABC
captures this opportunity by offering 20 Metric Ton per Day biodiesel plant to its
customers.
PT. ABC�s biodiesel plant will need an initial investment that a huge portion of
this initial investment will be allocated in production machines and equipments.
PT. ABC whose main business is in chemical engineering field will provide its
customers all the machines and technical knowledge needed to operate this
biodiesel plant. Before the investor agreed the proposal, investors need to
perform a set of financial feasibility analysis in order to have information whether
this project will increase their wealth or this project will reduce their fortune.
Financial feasibility analysis shows that this project should be accepted.
However, this project is judged to have enormous risk. Investor who decided to
run this project should have risk management practice, such as hedging, in place
in order to protect the return that is provided by this project.
|