Investment Feasibility Study with the Capital Budgeting Method for the Construction Project of Facilities for Overnight Parking Services at APT Pranoto Airport in Samarinda City, East Kalimantan

The rapid development of transportation infrastructure has significantly increased the demand for vehicle parking facilities, particularly at strategic locations such as APT Pranoto Airport in Samarinda, East Kalimantan. This study evaluates the investment feasibility of constructing an overnight parking facility at the airport. Using a qualitative descriptive approach, financial analysis methods—including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI)—were applied. Primary data were collected through interviews with project managers and airport officials. The findings indicate that the current parking facilities are insufficient to meet demand, especially during peak seasons. Financial feasibility tests confirmed the project’s viability, with positive NPV values, an IRR surpassing the required rate of return, a PI exceeding 1, and a short payback period. These results demonstrate the project’s potential profitability and its ability to enhance service quality. Consequently, this investment is recommended as a sustainable initiative to support the airport’s increasing transportation needs and promote operational efficiency.

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Publication Details

Journal
American Journal of Economic and Management Business (AJEMB)
Published
2024-12-27
DOI
https://doi.org/10.58631/ajemb.v3i12.140
Primary Topic
Urban Transport Systems Analysis
Type
article
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article

Investment Feasibility Study with the Capital Budgeting Method for the Construction Project of Facilities for Overnight Parking Services at APT Pranoto Airport in Samarinda City, East Kalimantan

Muhammad Rezky Nugraha, Mentiana Sibarani
American Journal of Economic and Management Business (AJEMB)
Urban Transport Systems Analysis
article

Investment Feasibility Study with the Capital Budgeting Method for the Construction Project of Facilities for Overnight Parking Services at APT Pranoto Airport in Samarinda City, East Kalimantan

Muhammad Rezky Nugraha, Mentiana Sibarani
article en

Abstract

The rapid development of transportation infrastructure has significantly increased the demand for vehicle parking facilities, particularly at strategic locations such as APT Pranoto Airport in Samarinda, East Kalimantan. This study evaluates the investment feasibility of constructing an overnight parking facility at the airport. Using a qualitative descriptive approach, financial analysis methods—including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI)—were applied. Primary data were collected through interviews with project managers and airport officials. The findings indicate that the current parking facilities are insufficient to meet demand, especially during peak seasons. Financial feasibility tests confirmed the project’s viability, with positive NPV values, an IRR surpassing the required rate of return, a PI exceeding 1, and a short payback period. These results demonstrate the project’s potential profitability and its ability to enhance service quality. Consequently, this investment is recommended as a sustainable initiative to support the airport’s increasing transportation needs and promote operational efficiency.

American Journal of Economic and Management Business (AJEMB)Vol. 3(12)
Harapan Bangsa Institute of Technology (ID), Universitas Patria Artha (ID)
Industry, innovation and infrastructure
Openalex Percentile: Top 72%
Urban Transport Systems Analysis
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