JHSS (Journal of Humanities and Social Studies) Volume 04, Number 02, September 2020, Page 197 - 200 https://journal.unpak.ac.id/index.php/jhss e-ISSN: 2598-120X; p-ISSN: 2598-117X - 197 - JHSS is licensed under ANALYSIS OF BUSINESS FEASIBILITY OF BANANA CHIPS Ruswaji a*) , Puguh Cahyono a) a) Lamongan Islamic University, Lamongan, Indonesia *) Corresponding Author: ruswaji.1965@unisla.ac.id Article history: received 20 August 2020; revised 29 August 2020; accepted 20 September 2020 Abstract. In this study, the method used is the Net Present Value (NPV) method, Internal Rate of Return (IRR), Payback Period (PP) and Break Event Point (BEP). The results of the study show that the net present value (NPV) is Rp. 31,024,617, - and is feasible because the NPV> 0, the Internal Rate of Return (IRR) of 8.25% is feasible because it is greater than the deposit interest value applicable to for the bank at this time, the Payback Period (PP) of 2 months is feasible because it is still smaller than the investment period, and the Break Event Point (BEP) of Rp.44,828,693 is feasible because the business is not profitable and does not lose if it earns income. amounting to Rp. 44,828,693, - The banana chip entrepreneurs still maintain the drying of banana chips by using solar energy, because the considerations of raw material prices and production and marketing costs are very sensitive to affect sales and profits. Keywords: feasibility analysis, net present value, internal rate of return, payback period, break event point I. INTRODUCTION Batu City is a tourist destination for domestic and foreign tourists, because it has a variety of natural charms that have been well managed. The development of tourist objects is increasingly rapid, making the entrepreneurs of souvenirs typical of Batu City growing. This is also felt by the banana chip entrepreneur, who is experiencing very rapid development. In fact, according to data from Desperindag Kota Batu, in 2019 one of the mainstay products that has the potential is banana chips. Agro-industry is a business to increase the efficiency of the agricultural sector to become a very productive activity through the process of agricultural modernization. Modernization in the industrial sector on a national scale can increase the value added revenue so that export revenues will be greater (Saragih [1]). Banana is one of the agricultural commodities that are very beneficial to human health because of its nutrients (Sonawane [2]), is a staple food in Uganda (Alex [3]), is one of most important food crops in the world (Adeyanju [4]) and functionally according to Oi [5] it will be optimal benefits, when it is processed for example into banana flour. Bananas can also be made a variety of processed foods, including banana chips. Banana chips is one of traditional foods favored by people in Indonesia. This business has a backward linkage with agri-cultural sector because it uses raw materials from this sector ie bananas. The implication, development of banana chips business will have an impact on development of banana farming due to increasing need of raw materials. Banana chips business is generally a small-scale business, but has an important role in Indonesian economy. According to Tambunan [6] (2013), small business is a largest part of existing business in Indonesia and contributes significantly to job creation, and poverty reduction. Banana chips are snack products made from sliced bananas and fried, with or without permitted food additives (SNI 01-4315-1996) (Haryanto [7]). bananas contain high enough nutrition, low cholesterol and high vitamin B6 and vitamin C. The largest nutrients in ripe bananas are 373 milligrams of potassium per 100 grams of bananas, 250-335 grams of vitamin A per 100 grams of bananas and 125 milligrams of chlorine per 100 grams of bananas [8]. Bananas are also a source of carbohydrates, vitamins A and C, and minerals. The largest carbohydrate component in bananas is starch in the pulp, and will be converted into sucrose, glucose and fructose when the banana is ripe (15- 20%) (Dame [9]). However, the increasing market demand made banana chip entrepreneurs trying to increase their sales turnover [10]. However, it is increasingly difficult for entrepreneurs to increase their productivity, this is because the technology used to produce banana chips is still simple. So that it cannot meet the very high market needs. The problem is the drying process of banana chips, because during the dry season the sun is very bright [11]. However, if the rainy season, it is difficult to do the drying. Because if it is dried in the sun for two days, it will reduce the quality of the banana chips. In fact, it will make the product become exposed to mold and not suitable for further processing. To maintain the quality of the banana chips, it can be done by drying. With drying, banana can be stored longer [12]. The principle of drying banana is an effort to evaporate water because there is a difference in the water vapor content between the air and the dried material. Salt has a less water vapor content than dried material. One of the factors that can accelerate drying is wind or flowing air. . With the presence of air flow, saturated air can be replaced with dry air so that