3 What is the IRR of the project

Year Cash Flow PV

Discount 0 -38,500,000 -38,500,000
0 1 3,619,828 2,887,258
Initial Inv 2 13,039,028 8,295,461
-38,500,000 3 18,755,528 9,517,487
4 20,291,778 8,213,169
5 29,694,590 9,586,624
NPV 0
IRR of the project = 0

4 What is the NVP of the project

Year Cash Flow PV

Discount 0 -38,500,000 -38,500,000
0 1 3,619,828 3,231,989
Initial Inv 2 13,039,028 10,394,633
-38,500,000 3 18,755,528 13,349,814
4 20,291,778 12,895,791
5 29,694,590 16,849,508
NPV 18,221,735
 QUESTION
1 PAYBACK PERIOD
Year Cash Flow PP
0 (38,500,000.00) (38,500,000.00)
1 3,619,827.50 (34,880,172.50)
2 13,039,027.50 (21,841,145.00)
3 18,755,527.50 (3,085,617.50)
4 20,291,777.50 17,206,160.00
5 29,694,590.00
PAYBACK PERIOD AT 3 YEARS

2 PROFITABLE INDEX OF PROJECT

DISCOUNT 0.12
Initial Investment (38,500,000.00)

Year Cash Flow PV

1 3,619,827.50 3,231,988.84
2 13,039,027.50 10,394,632.89
3 18,755,527.50 13,349,814.01
4 20,291,777.50 12,895,791.44
5 29,694,590.00 16,849,507.84
56,721,735.02

Profitability Index -1.4732918188

3 IRR of the project

DISCOUNT 0.2537251
Initial Investment (38,500,000.00)

Year Cash Flow PV

0 (38,500,000.00) (38,500,000.00)
1 3,619,827.50 2,887,257.69
2 13,039,027.50 8,295,461.39
3 18,755,527.50 9,517,487.18
4 20,291,777.50 8,213,169.42
5 29,694,590.00 9,586,624.03
NPV 0

IRR of the project 0.25372512 25.37%

4 Project NPV
DISCOUNT 0.12
Initial Investment (38,500,000.00)

Year Cash Flow PV

0 Rp (38,500,000.00) Rp (38,500,000.00)
1 Rp 3,619,827.50 Rp 3,231,988.84
2 Rp 13,039,027.50 Rp 10,394,632.89
3 Rp 18,755,527.50 Rp 13,349,814.01
4 Rp 20,291,777.50 Rp 12,895,791.44
5 Rp 29,694,590.00 Rp 16,849,507.84
NPV Rp 18,221,735.02
MINI CASE
FAJRYANSYA MIFTAHUL F - MAN. INDUSTRI kelas profesional
9211950013009

TOTAL LOST
year cost per unit estimasi penjualan revenue reduce sales cost/ unit Old sales old
SALES
1 480.00 74,000.00 35,520,000.00 15,000.00 310.00 4,650,000.00 80,000.00
2 480.00 95,000.00 45,600,000.00 15,000.00 310.00 4,650,000.00 60,000.00
3 480.00 125,000.00 60,000,000.00
4 480.00 105,000.00 50,400,000.00
5 480.00 80,000.00 38,400,000.00

Total Variable
year Unit price Variable (new) Lost Sales cost
1 185.00 13,690,000.00 1,800,000.00 11,890,000.00
2 185.00 17,575,000.00 1,800,000.00 15,775,000.00
3 185.00 23,125,000.00 23,125,000.00
4 185.00 19,425,000.00 19,425,000.00
5 185.00 14,800,000.00 14,800,000.00

YEAR
1 2 3 4 5
Sales 28,595,000 39,375,000 60,000,000 50,400,000 38,400,000
VC 11,890,000 15,775,000 23,125,000 19,425,000 14,800,000
Fix Cost 5,300,000 5,300,000 5,300,000 5,300,000 5,300,000
Depreciation 5,501,650 9,428,650 6,733,650 4,808,650 3,438,050
Equipment price 38,500,000 38,500,000 38,500,000 38,500,000 38,500,000
MACRS (7 years) 0.14290 0.24490 0.17490 0.12490 0.08930
EBT 5,903,350 8,871,350 24,841,350 20,866,350 14,861,950
Tax (35%) 2,066,173 3,104,973 8,694,473 7,303,223 5,201,683
NI 3,837,178 5,766,378 16,146,878 13,563,128 9,660,268
+Depreciation 5,501,650 9,428,650 6,733,650 4,808,650 3,438,050
 OCF 9,338,827.50 15,195,027.50 22,880,527.50 18,371,777.50 13,098,317.50
NWC (20%)
BEGIN - 5,719,000.00 7,875,000.00 12,000,000.00 10,080,000.00
END 5,719,000.00 7,875,000.00 12,000,000.00 10,080,000.00 -
NWC CF (5,719,000.00) (2,156,000.00) (4,125,000.00) 1,920,000.00 10,080,000.00
Net CF 3,619,827.50 13,039,027.50 18,755,527.50 20,291,777.50 23,178,317.50

year CF FOR THE PROJECT

0 38,500,000.00
1 3,619,827.50
2 13,039,027.50
3 18,755,527.50
4 20,291,777.50
5 29,694,590.00
unit price lost revenue income
reduce
275.00 2,275,000.00 28,595,000.00
275.00 1,575,000.00 39,375,000.00
60,000,000.00
50,400,000.00
38,400,000.00
 conth republic
new smart phone
develope prototype $ (750,000.00)
marketing study $ (200,000.00)
manufacture $ (185.00) per each
fix cost operation $ (5,300,000.00) per year
estimates sales volume year 1 74,000
2 95,000
3 125,000
4 105,000
5 80,000
unit price $ 480.00 per smart phone
necesery equipment cost $ (38,500,000.00) depreciated 7 years MACRS schedule
$ 5,400,000.00 salvage value in 5 year

old smart phone

estimates sales volume year 1 80,000
2 60,000 45,000
unit price $ 310.00 per smart phone
variable cost $ (125.00) per each
fixed cost $ 1,800,000.00 per year
reduce sales (15,000) year 2
unit price $ 275.00 per smart phone year 2
NWC 0.20 PER SALES/YEAR
CORPORATE TAX RATE 0.35 PER YEAR
0.12 REQUIRED RETURN