The analysis financial feasibility of Pempek “a Savoury fishcake delicacy” from Palembang City, South Sumatra, Indonesia

This study aims to examine two main areas of research: (1) To find out the production process of black pempek (river fish) businesses in Palembang City, and (2) To analyze the financial feasibility of black pempek food businesses in Palembang City based on NPV, IRR, B/C ratio and Net B/C, using a case study method. Data collection was carried out using direct interview techniques with river fish pempek business actors and tracing data on the River Fish Pempek Industry including: investment costs, operational costs, production volume, labor costs, income, product selling prices, and others. Data analysis was carried out descriptively analytically, for the first purpose using the production, depreciation, and income formula approaches and then calculating the BC ratio, NPV, and IRR. Meanwhile, to answer the second purpose using the marketing efficiency formula approach Npi = Hji x Jpi. The results of the study indicate that financially the river fish pempek business is feasible to run where based on long-term calculations for 5 years, the NPV value is Rp. 355,342,418.8, the IRR is 22%, and the Gross B/C is 1.33. The marketing system and channels in the Black Pempek Business can be said to be efficient, because the value obtained has a marketing efficiency of less than 50 percent (Ep <50 percent).