Cost Analysis and return of community drinking water moo.1 in Maklua Mai, Sung Nern District, Nakhon Ratchasima Province

Abstract

The purposes of this research were to study the background, the cost and the return of the community drinking water project at Moo.1, Maklua Mai, Soung Nern District, Nakhon Ratchasima Province. Nonprobability Sampling method; Purposive Sampling was used. The tool was the structure interview with 5 members of the Drinking Water Committees. The results showed that 1) As the expansion of the community from the agricultural sector to the industrial sector, the need to buy more water for the consumption increased. Then, in 2016, the community leaders and villagers established the community drinking water plant named "Kla Dee", with the support from the government and the community members. 2) Considering the returns, It was estimated that the average sale was 100,000 baht per month. Moreover, the payback period method was within about 4.9 years. The net present value method of the project was 467,463 baht while the internal rate of the return method was 17.41%. According to the sensitivity analysis, the profitability index was 1.62 times. The sales were highly sensitive to various indicators, then the operation must be carefully supervised. From the analyzing of the production volume from the current sales, the average production capacity was less than 1,000 liters per day, while the full capacity of the plant is 6,000 liters per day. Then it is suggested that the daily production capacity should be significantly increased without more investment in the equipment or the factory improvement, which are the additional fixed costs. Moreover, the increase in production and the marketing promotion can increase the sales to gain more profit.