Investing in 150kV Substation Boosts Profitability for Tire Company
The tire company analyzed the investment in a 150kV substation to improve electricity supply reliability. They used historical data and economic methods to assess the financial value. The project showed a payback period of 5.35 years and a net present value of Rp 40,944,770,640.32 in the 6th year. The internal rate of return was 5.5%, exceeding the company's minimum return rate. Lower interest rates led to faster investment returns. Overall, the analysis confirmed that the investment would bring direct profits to the company.