Investment Analysis in Utilizing Carbide Waste as a Material for Making Bricks

The production of acetylene gas uses the main material calcium carbide (CaC2) and water (H2O). The production results in acetylene gas and carbide residue waste. Carbide residue waste is classified as Hazardous and Toxic Material waste and must be sent to a third party with permission to process and utilize the waste. Routine deliveries to third parties are a cost that reduces PT X’s profit. PT X decided to develop a plan to utilize the carbide residue waste internally to reduce waste management costs. Research and studies were conducted to analyze and calculate the feasibility of this project. The primary challenge in implementing this project is assessing the market opportunity, which requires a comprehensive analysis included in the investment analysis section using methodologies such as the business model canvas, Porter’s five forces, capital budgeting analysis, sensitivity analysis, scenario analysis, and Monte Carlo simulation to determine economic feasibility. The research identified an investment project with a Net Present Value (NPV) of IDR 4,665,679,514 and an Internal Rate of Return (IRR) of 23.06% with Payback Period 9.16 years. Sensitivity analysis revealed that the price per unit realization is the most sensitive factor, causing the NPV to turn negative with a swing change of−20%. Scenario analysis showed an NPV of IDR 8,773,737,112 in the worst scenario and IDR 35,822,888,544 in the best scenario, while Monte Carlo simulation indicated a probability of NPV < 0 of 33.43% and NPV > 0 of 66.57%. The investment project analysis results demonstrate the feasibility of implementing this project for the company, with positive economic indicators and reduced waste management costs.