41 Interpretation of results The analysis of Payback Period is therefore an analysis of investment projects with relatively long periods and consider investment risks to use in selecting investment projects by looking at the fastest Payback Period because it will give entrepreneurs the least risk of investment as well. Calculation * due to company cash inflows not equal in each year. Therefore use a distribution table to see the details: Year Cash inflow Accumulated cash flow 0 1,373,121 0 1 3,500,070 3,500,070 2 6,500,130 10,000,200 3 10,000,200 20,000,400 4 10,000,200 30,000,600 5 10,029,782 40,030,382 ������������������������ ������������������������������������ ������������ ������������������������������������������ = 3,500,070 − 2,905,982 3,500,070 = 0.17 = 1.7 years Conclusion The calculation shows that the Payback Period is about 1.7 years, which is 5 years less than the project life. Construction material suitable for investment. 5.5 Break Even Point Break Even point is the level of sales of the business that is equal to the total cost of the business. Which is the point where the business has no profit or loss the Break Even Point can be found only if the entrepreneur can separate what the business costs are at fixed costs. And variable costs what are some things. (Terra BKK, 2557)
42 The amount at the point of receipt (TR) = expense (TC) Will get QP = Fixed Cost (TFC) + Variable Cost (TPC), so get the Break Even calculation formula as follows Formula ������������������������������ ������������������������(������������) Q = ������������������������������������������ ������������������������������ ������������������ ������������������������ (������) − ������������������������������������������������ ������������������������������ ������������������ ������������������������ (������������������) TFC = fixed cost per unit TVC = variable cost per unit AVC = variable cost per unit TVC AVC = Q Q = Production capacity (sets) Q* = Production breakeven point Interpretation of results What is the Break Even Point or the point of capital. The Break Even Point is where people do business at par. Which means having expenses equal to income not losing at the same time, not profitable. We can find Break Even Point by overlapping the payment graph and income graph. The slope of both graphs is not equal because we have to sell at a price that is higher than the cost in order to take profit already. Therefore, both straight line graphs intersect at one point which is Break Even Point or B.E.P is Break Even Point.
43 List Year 1 Year 2 Year 3 Year 4 Year 5 Variable Cost Unit (V) 8,157.37 8,157.05 8,156.93 8,156.93 8,156.93 (Unit: Baht) 50,904 42,687 33,906 24,523 14,495 Total Fixed Costs (F) (Unit: Thousand Baht) 10,000 10,000 10,000 10,000 10,000 Selling Price Per Unit 27,626 23,162 18,397 13,305 7,865 (Unit: Baht) Production Breakeven Point Table 5.1 shows Break Even Point information. Production Break Even Point Year 1 27,626,000 Year 2 23,162,000 Year 3 18,397,000 Year 4 13,305,000 Year 5 7,865,000 Table 5.2 shows Break Even Point of Production. Conclusion From the table, it is found that the break-even point of production (������∗) is less than the Production Amount (������,), indicating that the store business, Tor Rungrueang Khon Kaen Ltd.,Part suitable for investment since the breakeven point started from the first year onwards.
Reference Krungsri research (2019). Modern trade tends to be more profitable than traditional trade. Search from https://www.krungsri.com/bank/getmedia/dfd2db4c-fd30-4be1-9840- 6591d908cda2/IO_Construction_Materials_190531_TH_EX.aspx สายยนต์ สายแสนทอง (2014). The Adaptation of 5 S. Construction Company Limited under the Scenario of the Construction Business in Khon Kaen in the B.E. 2557 – 2567. Search from https://www.tci- thaijo.org/index.php/mbakkujournal/article/download/64434/52851/ https://group.atradius.com/publications/market-monitor-construction-thailand-2018.html https://www.krungsri.com/bank/getmedia/bb684bcf-6d7a-46ad-9bc6- 040b23875b0c/IO_Construction_Contractor_2018_EN.aspx
APPENDIX
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65 Figure Appendix 1 shows Interview Entrepreneur. Figure Appendix 2 shows the Organizer with CANVAS model.
66 Organizer Profile 1. Name : Sirikwan Ananthawan Nickname : Chompoo ID : 613320176-7 E-mail : [email protected] Phone : 081 769 4155 Faculty : Economics 2. Name : Cattreya Saeysema Nickname : Cat ID : 613320080-0 E-mail : [email protected] Phone : 093 547 9522 Faculty : Economics 3. Name : Kittitat Tanongsak Nickname : Extra ID : 613320207-2 E-mail : [email protected] Phone : 063 198 8145 Faculty : Economics
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