preliminary acquisition plan which includes a capital funds with verified mineable

surface coal reserves and planned coal prices.

This acquisition would add to Diamond's coal reserves and position itself as an important
player in the coal export market in Indonesia. Before getting the green light from his parent
firm, Agus needed to ensure this investment would create value for the firm. He also needed
to convince his local banker to provide the necessary financing in a challenging environment
with very volatile commodity prices.

net present value (NPV) of an investment proposal is the present value of the proposal’s net
cash flows less the proposal’s initial cash outflow. If a project’s NPV is greater than or equal
to zero, the project should be accepted.

NPV = Present Value of Future Cash Flows LESS Project’s Initial Investment

What are the strength and weaknesses of Coal Agus (SWOT Analysis)

What are external factors that are impacting the business environment (PESTEL Analysis)

Should Coal Agus enter new market or launch new product (Opportunities & Threats from
SWOT Analysis)

What will be the expected profitability of the new products or services (Porter Five Forces
Analysis)

Finally which business to continue, where to invest further and from which to get out (BCG
Growth Share Analysis)