A Feasibility Study of a University Dormitory Construction Project: A Case Study of Uttaradit Rajabhat University


  • Sittinan Thongsiri Faculty of Industrial Technology, Uttaradit Rajabhat University.
  • Siwat Kamonkunanon Faculty of Industrial Technology, Uttaradit Rajabhat University.


project feasibility, university dormitory, project investment, IRR, NPV, ROI


The purposes of this research were as follows: 1) to study the feasibility of a university dormitory project; and 2) to find the return of investment (ROI) for the university and private sector by using a case study undertaken at Uttaradit Rajabhat University. This study evaluated the project feasibility using the economic values of NPV (net present value), IRR (internal rate of return), and PB (payback period) and compared them with theories for decision making, considering a MARR (minimum acceptable rate of return) of 12% for a project period of 25 years.


From the study, it was found that the university dormitory capacity is 2,880 students. The NPV = 51,014,552 baht which represents a worthy project for investment. The PB = 14.25 years compared with the project period of 25 years, meaning this project has low risks and is able to payback at 57% of the project period. The IRR = 14.5% which is more than the MARR (12%) meaning that this project is worthy for investment. From the sensitivity analysis, researchers analyzed 2 cases: 1) The case of the project investment increasing or decreasing 10%, and its effect on the project interest- the NPV changed by approximately 25 million baht, the IRR by 1.3%-1.6%, and the PB by 4 years; and 2) The case of the rental percentage decreasing 10%, and its effects on the project interest- the NPV changed by approximately 31 million baht, the IRR by 1.5%, and the PB by 4.5 years.  The second case is the most important case affecting the profits of the project. Considering all the cases within the sensitivity analysis, this project is seen as worthy for investment.


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