Andesite Quarry Mining Project in West Java Proven Economically Feasible
PT Gunung Lagadar Abadi conducted an economic study to determine if their andesite quarry mining project in West Java is financially viable. They used discounted cash flow analysis to assess the investment, considering factors like net present value, internal rate of return, and payback period. The project was found to be feasible, with a net present value of Rp. 33.856.215.680, an internal rate of return of 96.5%, and a payback period of 11 months. Sensitivity analysis showed that the project would only be unprofitable if the selling rate dropped by 9.98% and production costs increased by over 28.41%.