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Oleh : Arwan Apriyono

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If B/C Formula Assess 1 Project The project is profitable, if this ratio is greater than one, Assess >2 Project Use incrementa Analysis If B/C ≥ 1 choose the higher investation If B/C < 1, choose the lower investation

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Assess 1 Project A car leasing company buys a car from a wholesaler for $24,000 and leases it to a customer for four years at $5,000 per year. Since the maintenance is not included in the lease, the leasing company has to spend $400 per year in servicing the car. At the end of the four years, the leasing company takes back the car and sells it to a secondhand car dealer for $ 15,000. For the moment, in constructing the cash flow diagram, we will not consider tax, inflation, and depreciation. Assess 1 Project A car leasing company buys a car from a wholesaler for $24,000 and leases it to a customer for four years at $5,000 per year. Since the maintenance is not included in the lease, the leasing company has to spend $400 per year in servicing the car. At the end of the four years, the leasing company takes back the car and sells it to a secondhand car dealer for $ 15,000. For the moment, in constructing the cash flow diagram, we will not consider tax, inflation, and depreciation. Example

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Step 1 Make cast flow diagram Example

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Step 1 Calculate the net present value of the benefits and the costs.

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Compare 2 Project Project A : Example 1 Project B : Buy a car at $25,000, lease it for two years at $10,000 per year with no maintenance cost and sell it for $18,000 at the end of two years. Assuming an interest rate of 10%, which project should we choose? Compare 2 Project Project A : Example 1 Project B : Buy a car at $25,000, lease it for two years at $10,000 per year with no maintenance cost and sell it for $18,000 at the end of two years. Assuming an interest rate of 10%, which project should we choose? Example

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Solution Castflow Project ACastflow Project B Increment Castflow Solution Castflow Project ACastflow Project B Increment Castflow Example

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Solution B/C lebih dari 1, maka ambil project yang investasi lebih besar Jika B/C lebih kecil dari 1, ambil project yang investasi/cost lebih kecil

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If is the period of time required for the benefits of an investment to equal the cost of the investment We first construct the net cash flow diagram and then by simple arithmetic calculation add the benefits and the cost year by year until the total equals the initial investment. The payback period neglects the time value of money and is only accurate when the interest rate is zero Many analysts consider this method to be a useful quick and dirty way of comparison. If is the period of time required for the benefits of an investment to equal the cost of the investment We first construct the net cash flow diagram and then by simple arithmetic calculation add the benefits and the cost year by year until the total equals the initial investment. The payback period neglects the time value of money and is only accurate when the interest rate is zero Many analysts consider this method to be a useful quick and dirty way of comparison. Payback Method Benefit tidak sama dengan profit Profit = benefit - cost

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If Example

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Alternative A : Payback period is the period of time required for the profit or other benefits of an investment to equal the cost of the investment. Thus the payback period for Alt. A is 2.5 years. Alternative B : Since the annual benefits are uniform, the payback period is simply : $2783/$1200 per year years Tominimize the payback period, choose Alt. B Alternative A : Payback period is the period of time required for the profit or other benefits of an investment to equal the cost of the investment. Thus the payback period for Alt. A is 2.5 years. Alternative B : Since the annual benefits are uniform, the payback period is simply : $2783/$1200 per year years Tominimize the payback period, choose Alt. B Example

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Two machines are being considered for purchase. If the MARR is 10%,which machine should be bought? 1. Use an IRR analysis comparison. 2. Use a payback periode analysis 3. If, interest is 15%, which machine should be chosen Two machines are being considered for purchase. If the MARR is 10%,which machine should be bought? 1. Use an IRR analysis comparison. 2. Use a payback periode analysis 3. If, interest is 15%, which machine should be chosen Task 3 Dikumpulkan Kamis 8 Desember 2011

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