The Influence Of Operating Costs On The Sensitivity Of Financial Viability Case Study: Construction Of South Surabaya Regional General Hospital
Year: 2025
Type: article
Abstract: This study evaluates the financial feasibility of constructing the South Surabaya Regional General Hospital using key investment evaluation methods, including Net Present Value (NPV), Internal Rate of Return (IRR), benefit-cost ratio (BCR), and Payback Period (PP). The study also examines how changes in management costs affect the project's financial viability. Data collected includes both initial investment costs and ongoing operational expenses. The findings indicate that the project is financially viable, with a positive NPV, an IRR higher than the required rate of return, and a payback period shorter than planned. Sensitivity analysis highlights that management costs significantly influence the project's feasibility. These insights can help the Surabaya City Government optimize hospital management costs and ensure the sustainability of healthcare projects.
Source: Journal Of World Science
Authors: Rachma Damayanti, Andi Patriadi, Sajiyo Sajiyo
Institution: Universitas 17 Agustus 1945 Surabaya
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408740059