Abstract:
This paper provides a probability study for investment of housing project in Municipality Mueang Chiang Rai Key aspects covered included physical marketing and financial. The study based on financial analysis in aspects of Payback Period, Net Present Value (NPV), and Internal Rate of Return (IRR) with discount rate of 7.5 % in 3 years
The housing project Total area is 15 rai 3 ngan 66.6 sq wah or 6,366.6 sq Wah (25,466.40 sq meters) in low density Residential area of the city plan of Mueang Chiang Rai and houses. There are 2 styles is one-storey detached house with a total of 31 units. Two-storey detached house with a total of 47 units total sum 78 unit. And the house price of one-storey detached house is 2.15 million baht and Two-storey detached house is 3.35 million baht. And project fix cost and administrative costs of 176.71 millions baht and 7.63 millions baht and total of benefits this project were 224.1 millions baht in 3 years project time period.
The results showed the net present value (NPV) of 26.09 millions baht, the internal rate of return(IRR) of 28.58 percent and payback period of 72 unit, the project can be order to invest. The sensitivity Analysis found that a house building cost should not exceed 20 percent, project can order to invest. A Land Price should not exceed 20 percent, project can order to invest. A house price would decrease in 10 percent, project can order to invest, if decrease over 13 percent, project is not order to invest. The Scenario Analysis, home sales volume can sale at 50 percent of planning, Internal Rate of Return (IRR) is 8.4 percent is nearby Loan interest at 7.5 percent project is not order to invest. There are risks in investing