Pt xyz as the main contributor of national oil production tries to increase the oil production by developing existing reservoirs using secondary oil recovery method in order to meet the demand for oil from Indonesian people. The implementation of the oil recovery method requires a lot of investment which is 624,021 million USD. Because of that the financial feasibility of investment must be conducted. Financial feasibility will be reviewed according to a capital budgeting framework to accept or reject a project, based on Net Present Value (NPV), Internal Rate of Return (IRR), Discounted Payback Period (DPP), Payback Period (PP), and Profitability Index (PI). Based on a 9, 64% weighted average cost of capital, the NPV of the project is USD 170.095.470, DPP is 4, 26 years, PP is 3, 80 years, and PI is 1,290. Additionally, the project has an IRR of 28%. A sensitivity analysis is also conducted in this study to evaluate projects resilience should the relevant parameters change in
Nainggolan et al. (Fri,) studied this question.