Analisis Kelayakan Investasi Usaha Kecil dan Menengah pada Zent Salon Kota Kupang

Abstract

This research is to analyze the feasibility of investment in small and medium enterprises (SMEs) in Zent Salon City Kupang in the context of business expansion plans. Zent Salon is a beauty service business that has been operating for approximately 14 years and has the potential to continue to grow. However, before expanding, an investment feasibility analysis is needed so that the decisions taken do not pose a risk of loss. For the preparation of cash flows, this study uses a quantitative descriptive approach and uses Zent Salon's financial data from 2022 to 2024. The analysis methods used are Payback Period (PP), Net Present Value (NPV), and Internal Rate of Return (IRR).  The Return Period (PP) value  is  used to determine the return period of investment, the Net Present Value (NPV) is used to assess the added value of the investment, and the results of the study show that the value  of the Return Period  is in the feasible category; Net Present Value (NPV) is positive, and the Internal Return of Rate (IRR) is greater than the prevailing interest rate. Thus, the investment plan for the expansion of Zent Salon Kupang City was declared feasible to be implemented from a financial aspect.

Keywords: Investment feasibility, SME,  period of return, net present value, and internal rate of return.