Nama : Benito Juhantyo Wibowo

NIM 1714422056

Prodi : Pemasaran Digital

Financial Management

11 – 2. (Calculating NPV) Monroe Shipping, Inc., is considering whether to expand its logistics
operations in Portland, Oregon. The expansion will require the expenditure of
$12,000,000 on new automated track crane systems and will generate annual net cash
inflows of $2,000,000 per year for each of the next eight years by reducing operating
costs. In Year 8, the firm will also get back a cash flow equal to the salvage value of the
equipment, which is valued at $2 million. Thus, in Year 8 the investment cash inflow
will total $4,000,000. Calculate the project’s NPV using each of the following discount
rates :

a. 8 percent
b. 10 percent
c. 12 percent
d. 16 percent

Diketahui

▪ Cash Flow for Year = $12.000.000

▪ Annual net cash inflows = $2.000.000 per tahun selama delapan tahun pertama.
▪ Salvage value = $4.000.000

Ditanya … Net Present Value?

𝐶𝐹1 𝐶𝐹𝑛
Net Present Value (NPV) = Cash Flow for year 0 (CF0) + +
(1+𝐷𝑖𝑠𝑐𝑜𝑢𝑛𝑡 𝑅𝑎𝑡𝑒 (𝑘) )^𝑛 (1+𝑘 )^𝑛

JAWAB :

NPV pada tingkat diskonto 8%, 10%, 12%, dan 16%. (Jika NPV positif, menunjukkan proyek
dapat diterima dan dapat menghasilkan keuntungan. Jika negatif, proyek tidak layak untuk
dikejar atau tidak dapat diterima).
 a) 8 Percent
$2.000.000 $2.000.000 $2.000.000 $2.000.000 $2.000.000
NPV = - $12.000.000 + 1
+ (1+0.08)2 + (1+0.08 )3+ (1+0.08)4+ (1+0.08 )5+
(1+0.08)
$2.000.000 $2.000.000 $4.000.000
(1+0.08)6
+ (1+0.08 )7
+ (1+0.08 )8

= $573.815,66

b) 10 Percent
$2.000.000 $2.000.000 $2.000.000 $2.000.000 $2.000.000
NPV = - $12.000.000 + (1+0.10)1
+ (1+0.10)2 + (1+0.10 )3+ (1+0.10)4+ (1+0.10)5+
$2.000.000 $2.000.000 $4.000.000
(1+0.10)6
+ (1+0.10 )7
+ (1+0.10 )8

= - $397.132,84

c) 12 Percent
$2.000.000 $2.000.000 $2.000.000 $2.000.000 $2.000.000
NPV = - $12.000.000 + (1+0.12)1
+ (1+0.12)2 + (1+0.12 )3+ (1+0.12)4+ (1+0.12)5+
$2.000.000 $2.000.000 $4.000.000
(1+0.12)6
+ (1+0.12 )7
+ (1+0.12 )8

= - $1.256.954,01

d) 16 Percent
$2.000.000 $2.000.000 $2.000.000 $2.000.000 $2.000.000
NPV = - $12.000.000 + (1+0.16)1
+ (1+0.16)2 + (1+0.16 )3+ (1+0.16)4+ (1+0.16)5+
$2.000.000 $2.000.000 $4.000.000
(1+0.16)6
+ (1+0.16 )7
+ (1+0.16 )8

= - $2.702.767,30

11 – 4. (Calculating EAC) (Related to Checkpoint 11.2 on page 370) Barry Boswell is a

financial analyst for Dossman Metal Works, Inc., and he is analyzing two alternative
configurations for the firm’s new plasma cutter shop. The two alternatives, denoted A
and B below, will perform the same task, but alternative A will cost $80,000 to
purchase, while alternative B will cost only $55,000. Moreover, the two alternatives
will have very different cash flows and useful lives. The after-tax costs for the two
projects are as follows:
 Year Alternative A Alternative B
0 $(80,000) $(55,000)
1 (20,000) (6,000)
2 (20,000) (6,000)
3 (20,000) (6,000)
4 (20,000)
5 (20,000)
6 (20,000)
7 (20,000)

JAWAB :
a. Calculate each project’s EAC, given a 10 percent discount rate
Discount rate : 10% = 0.1
Alternative A : Number of the year (n) = 7 thn
: Cost = -$80,000
: Annual Cash Outflows = -$20,000

NPVA = - $80.000 + PV of $20.000 each year

NPVA = - $80.000 + - $20.000 (PV of Annuity Factor)

1 1
NPVA = - $80.000 + -$20.000 [ − ]
0.1 0.1(1+0.1)7

NPVA = −$177.368,37

EACA = NPVA ÷ Annuity Factor

= - $177,368 ÷ 4.8684
= - $36,432.5

Alternative B : Number of the year (n) = 3 thn

: Cost = -$55,000
: Annual Cash Outflows = -$6,000

NPVB = -$55.000 + PV of $6.000 each year

1 1
NPVB = -$55.000 + -$6.000 [ − ]
0.1 0.1(1+0.1)3
 NPVA = −$69.921,11

EACB = −$69.921,11÷ 2.4868

= −$28.116,90

b. Which of the alternatives do you think Barry should select? Why?

Berdasarkan perhitungan di atas Alterneative A dan Alternative B, alternative b lebih tepat
untuk Barry karena EAC Alternative B lebih rendah dibandingkan EAC Alternative A.
Alternative B mewakili biaya tahunan lebih rendah.

11 – 7. (Calculating IRR) Determine the IRRs for the following projects:

IRR adalah tingkat bunga yang membuat NPV (Net Present Value) dari suatu investasi
menjadi nol. Ketika tingkat pengembalian aktual dari investasi melebihi tingkat
diskonto yang digunakan dalam perhitungan IRR, maka investasi tersebut dianggap
menguntungkan. Sebaliknya, jika tingkat pengembalian aktual lebih rendah dari IRR,
maka investasi tersebut dianggap tidak menguntungkan. \

a. An initial outlay of £5,000 resulting in a cash inflow of £800 at the end of each
year for the next 10 years
No Years Annual Cash Flows
1 0 -5000 Nilai IRRnya adalah 9,61%
2 1 800
3 2 800
4 3 800
5 4 800
6 5 800
7 6 800
8 7 800
9 8 800
10 9 800
11 10 800
IRR 9,61%
 b. An initial outlay of £5,000 resulting in a cash inflow of £700 at the end of each
year for the next 20 years = Nilai IRR = 12.72%

No Years Annual Cash Flows

1 0 -5000
2 1 700
3 2 700
4 3 700
5 4 700
6 5 700
7 6 700
8 7 700
9 8 700
10 9 700
11 10 700
12 11 700
13 12 700
14 13 700
15 14 700
16 15 700
17 16 700
18 17 700
19 18 700
20 19 700
21 20 700
IRR 12.72%

c. An initial outlay of £5,000 resulting in a cash flow of £500 at the end of each year for
the next 12 years = Nilai IRR = 2.92%
 No Years Annual Cash Flows
1 0 -5000
2 1 500
3 2 500
4 3 500
5 4 500
6 5 500
7 6 500
8 7 500
9 8 500
10 9 500
11 10 500
12 11 500
13 12 500
IRR 2.92%

d. An initial outlay of £5,000 resulting in a cash flow of £1100 at the end of each year
for the next 5 years = Nilai IRR = 3,26%
Annual Cash
No Years
Flows

1 0 -5000

2 1 1.100

3 2 1.100

4 3 1.100

5 4 1.100

6 5 1.100

IRR 3,26%