Option 3

Below is the cash flow diagram and tabulated results for option 3.
1,000,000

173,988

179,207

179,207

164,000 168,920
27,207

152,000
152,000

152,000

8
152,000

10

152,000

152,000

124,793
276,793
428,793
580,793

Doing nothing condition. We would remain the same operating condition for 10
years which is year 2024 and it will decide whether to restructure then.

Cash Flow Analysis of Option 3:

Year, N

Cash Inflow(RM) Cash Outflow(RM)

1,000,000

164,000

164,000

168,920

168,920

173,988

173,988

179,207

179,207

179,207

152,000

27,207

27,207

152,000

(124,793)

(124,793)

152,000

(276,793)

(276,793)

152,000

(428,793)

(428,793)

152,000

(580,793)

10

(580,793)

152,000

(732,793)

R.O.R = 2.98%
PW = RM1,002 340.56
AW = RM 239,081.03

Net Cash Flow (RM)

1,000,000

Interest (%)

PW

($430,643.00)

10

$617,355.75

20

$1,002,340.68

30

$1,144,917.82

40

$1,193,109.84

50

$1,203,240.46

From the graph below, we can see that the R.O.R for option 3 is 4%.

PW against interest (%)

$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
$600,000.00

PW

$400,000.00
$200,000.00
$0.00
($200,000.00)

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52

($400,000.00)
($600,000.00)

Interest (%)