Analysis of Using Risk and Capital Budgeting for Investment Decision Making in SINI Company

Abstract

This research focuses on the SINI Company. SINI Company is a device tracker technology-driven start-up company. SINI Device Tracker is a form of smart device tracker. This product is equipped with a chip that will be connected by Bluetooth to the user's smartphone by SINI Apps. The features of this product are tracking features, sound mode, and missed call mode. In order to produce the product and application, SINI has invested high amount of initial investment for the research and development. SINI needs to reconsider the investment if the risk is too high and need high cost of mitigation and if the return of the investment is not as high as it expected. The purpose of this research is to describe and explain the risk analysis and capital budgeting for SINI Company. This research will use the theory problem root cause, internal and external business condition, risk analysis, capital budgeting, and investment decision making. By using the historical data of SINI financial data, added with comparation secondary data from company in the similar specification with SINI, as Tile and Chipolo, market situation secondary data, and data from previous study. At this stage in the study, the risk analysis and capital budgeting will be defined as a guideline for investment decision making in SINI Company.