Synthesis of Legal Provisions and a Financial Feasibility Study on Investment Project of Serviced Apartment Business around the Court in Amphur Hua Hin, Prachuap Khiri Khan Province

Abstract

The purpose of this research was to study the feasibility of apartment business investment around the court located in Amphur Hua Hin, Prachuap Khiri Khan Province, Thailand. A synthesis of legal provisions of Ministerial Regulation on the Building Control Act (No.9) B.E. 2535 (1992) was an approach for the research. The area suitable for investment was in Article 4 under this Ministerial Regulation which stipulates the building construction should not exceed 23 meters high. It was found that the interested investors could build a house or building under such conditions. The investment analysis showed that an area of 4 acres with 4-story building containing 49 rooms and an area of 4 acres with 4-story building containing 77 rooms was very attractive. For the financial ratios analysis, Internal Rate of Return (IRR) was at 15% which yielded more than other forms of investment such as bank, gold, stocks, and bond. Net Present Value (NPV) was greater than 0 at 481,018.06 baht. Other financial ratios included Profitability Index (PI) at 1.01 and return from investing such as ROA, ROE, GPM, and OPM was at 7%, 7%, 80%, and 72%, respectively. Keywords: Synthesis of legal provisions, Service business, Feasibility study



Author Information
Surapat Bhichaibade, Silpakorn University, Thailand
Thirawat Chantuk, Thailand

Paper Information
Conference: ACSET2013
Stream: Education

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