Indonesia Conference Directory

The franchise business of minimarket is growing very rapidly in Indonesia. This business requires business stores to place merchandise. Generally, business stores for the minimarket use a shop or kiosk. The shop or kiosk needed can be obtained in several ways. Three of them are buying, renting, and buying with loan. The purpose of this study is o apply the NPV (Net Present Value) and APV (Adjusted Present Value) analysis to choose the business store for a minimarket franchise outlet. NPV and APV analysis are used to obtain the most favorable choice for business store of a minimarket. Based on the results of the analysis carried out on the data and assumptions obtained, it can be concluded that there is no choice between renting and buying with loan that is always superior to all conditions in providing business space. Many factors influence every decision, including the percentage of rental prices compared to the value of land and buildings, the growth of land price, and the amount of discount rates or the returns expected by the company.