Using Capital Budgeting Method to Solve Financial Problems in Natural Perfume Business: A Case Study from Adem Fresh

  • Didid Rogiananto School of Business and Management, Institut Teknologi Bandung, Indonesia
  • Acip Sutardi School of Business and Management, Institut Teknologi Bandung, Indonesia
Keywords: feasibility business, risk analysis, capital budgeting, tech-business

Abstract

The purpose of this research is to solve financial problems that exist in Adem Fresh. Adem fresh is a business that provides natural products in the form of perfume, by using fermentation Adem Fresh can process fruits and vegetables into perfume seeds. Based on the analysis problems that have been carried out, the main problems for Adem Fresh are limited funds and resources. Therefore the use of capital budgeting and risk analysis is used to solve existing problems. Risk analysis is used to determine risk priorities and to reduce losses if such risks occur, while capital budgeting is used to assess whether the business is financially feasible or not. This research is structured using descriptive quantitative method, where in this study it does not prove a hypothesis but the researcher focuses on solving problems by describing solution based on existing data. The data taken in this study include financial data from Adem Fresh in 2020 and 2021, journals and books, expert opinions and also previous studies. With this research, it is hoped that it will have implications for the Adem Fresh business. First, the results of the feasibility analysis can be used as a consideration for owners regarding the Adem Fresh business. Second, with the existence of risk analysis, it can reduce the losses incurred because there is already a prepared mitigation and finally in this study an implementation plan is also prepared to answer the problems experienced by the Adem Fresh business.

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Published
2021-06-10
How to Cite
Rogiananto, D. and Sutardi, A. (2021) “Using Capital Budgeting Method to Solve Financial Problems in Natural Perfume Business: A Case Study from Adem Fresh”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 6(6), pp. 289 - 298. doi: https://doi.org/10.47405/mjssh.v6i6.828.
Section
Articles