Feasibility Analysis for a Laundry Business Venture on the Northern Caribbean Coast of Nicaragua

Abstract

The high birth rates, combined with the limited size of housing units in the Filemón Rivera neighborhood of Bilwi, Puerto Cabezas, have created the need to seek practical solutions to meet basic personal hygiene needs, such as laundry services. The objective of this study was to assess the feasibility of a laundry business project in the area. A survey was used as the data collection instrument and was administered to 30 families in the neighborhood. The sample was randomly selected, using economically active parents as the inclusion criterion. Additionally, a projected annual laundry service volume of 87,600 clothing items was estimated, representing 93% of the target market. The projected economic and financial indicators show positive results over the next five years. With external financing, the investment is expected to be recovered in 1 year and 8 months, and in 1 year and 9 months without financing. Estimates indicate that the Net Present Value (NPV), including salvage value, was C$140,697.69; the Internal Rate of Return (IRR) was 22.84%; and the Benefit-Cost Ratio (BCR) was C$1.14, which implies that for every córdoba invested, a return of 0.14 córdobas would be received. The study demonstrates that a laundry business project in the Filemón Rivera neighborhood is both socially and economically viable.