IJSSH 2017 Vol.7(8): 591-598 ISSN: 2010-3646
doi: 10.18178/ijssh.2017.V7.890

Analysis of the Financial Feasibility of Reusing the Former Plastic Manufacturing Heritage Site in Taiwan

Lee Duu-Hwa, Lin Hui-Wen, and Hsu Min-Fu
Abstract—The restoration and reuse of cultural heritage sites have become important issues in cultural heritage conservation. Financial feasibility related to the reuse and sustainable development of cultural heritage is key factor in the continuous conservation of cultural heritage. This study utilized engineering economics with comprehensive cost and revenue estimations to evaluate the economic feasibility analysis of restoration and reuse to reveal the financial indicators and risk analysis of the Former Plastic Manufacturing Heritage Site in Taiwan. Results reveal that at an interest rate of 5%, the site's NPV is NT$90.18 million, SLR is 115.5%, project and equity IRR and ERR are 6.20% and 5.37%, meaning that it can fully cover its own expenses, make profit, which also reflects the attractiveness of this investment to the Group. The heritage site will begin to generate profits in 2051, 31 years after it commences operations in 2021. Risk analysis reveals that the site's financial structure is sensitive to visitor numbers and the purchase rate, which efforts should go into raising visitor numbers and purchase rate it can greatly strengthen the site's financial robustness and help it to avoid financial losses when faced with rising interest rates.

Index Terms—Industrial heritage conservation, restoration and reuse, financial feasibility analysis, engineering economics.

The authors are with the Institute of Applied Economics, National Taiwan Ocean University, Taiwan (e-mail: dhlee@mail.ntou.edu.tw, hwlin@mail.ncku.edu.tw, z7510004@email.ncku.edu.tw).

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Cite: Lee Duu-Hwa, Lin Hui-Wen, and Hsu Min-Fu, "Analysis of the Financial Feasibility of Reusing the Former Plastic Manufacturing Heritage Site in Taiwan," International Journal of Social Science and Humanity vol. 7, no. 8, pp. 591-598, 2017.

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