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heavy equipment management diagrams and equivalences

Problems example
What is the initial price of heavy equipment for the implementation of a construction project that
must be provided if the equipment can be paid in installments of 754 million per year for 3 years
with interest of 10% per year and a down payment (DP) of 500 million rupiah? And what are the
initial costs that must be incurred, if at the end of the third year the heavy equipment can still be
sold for 950 million rupiah? You are asked to make each diagram and the equivalence of the two
cases. The answer from the first case is an important point to solve the second case.
Solution:
Known: Installment 754 Million Rupiah
Down Payment (DP) → 500 Million Rupiah
Interest ( i ) → 10% per annum
3rd Year Selling Price → 950 Million Rupiah
i = 20% n = 3 Tahun

P=?

1 2 3

Initial price = DP + ( 754,000,000 x (P/A x 10% x 3 ))

= Rp 500.000.000 + ( Rp 754.000.000 x 2,8292,829)


)

= Rp 500.000.000 + Rp2.133.066.000
= Rp2.633.066.000
Tabel 1
i= 10%
F=Rp 950,000,000
Initial cost of heavy equipment
P = initial P – ( F x (P/F,10%, 3)
= Rp. 2,633,066,000 - (Rp. 950,000,000 x ( 0.9151))
= IDR 2,633,066,000 - IDR 869,345,000
= IDR 1,763,721,000

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