Feasibility Study Of Mucuna bracteata Compost Business As A Umkm Product In Karo District
DOI:
https://doi.org/10.30737/agrinika.v10i2.7280Keywords:
Compost, Feasibility Study, Karo, MSMEs, Mucuna BracteataAbstract
Mucuna bracteata is a ground cover plant that can increase nitrogen availability in plantations. However, the biomass from pruning is often left to pile up or burned, potentially causing air pollution and increasing the risk of land fires. Utilizing this biomass as a raw material for compost is more productive, as it not only supports sustainable environmental management but also creates economic opportunities for Micro, Small, and Medium Enterprises (MSMEs). This study aims to assess the financial feasibility of a Mucuna bracteata-based compost business in Karo Regency by analyzing initial investment, operational costs, and revenue projections. Business feasibility is measured using the Net Present Value (NPV), Gross Benefit–Cost Ratio (Gross B/C), Internal Rate of Return (IRR), and Payback Period (PBP) indicators. The costs analyzed include raw materials, operational costs, marketing, and investment in processing facilities, with the selling price of compost ranging from IDR2,000 to IDR4,500 per kilogram. The results of the study indicate that the Mucuna bracteata compost business provides a positive NPV value of Rp85,154,866, a Gross B/C of 1.66, an annual IRR of 151.88%, and a Payback Period of 3.6 months at a discount rate of 6%. Financial feasibility was evaluated using a 12-month cash-flow projection as the analytical horizon. All indicators (NPV, Gross B/C, IRR, and Payback Period) were calculated based on monthly net cash flows and converted to annual values where appropriate. The results show a positive NPV of IDR 85,154,866, a Gross B/C of 1.66, an annualized IRR of 151.88%, and a Payback Period of 3.6 months under the base-price scenario. These results indicate that the business is financially feasible and capable of rapid capital recovery under the assumed conditions.
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