Download - Making capital investment decisions
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PAYBACK PERIOD
DISCOUNTED PAYBACK
NET PRESENT VALUE
AVERAGE ACCOUNTING RATE OF RETURN
INTERNAL RATE OF RETURN
MODIFIED INTERNAL RATE OF RETURN
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PAYBACK PERIOD
TAHUN CASH FLOW
1 Rp 30 juta
2 Rp 35 juta
3 Rp 50 juta
Papa Ron’s Pizza melakukan investasi dengan membuka gerai pizza baru di Mataram. Investasi tersebut membutuhkan biaya Rp 100 juta. Pada tahun ke-berapa Papa Ron’s memperoleh tingkat pengembalian investasi? Berikut ini adalah prediksi aliran kas selama 3 tahun ke depan
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PAYBACK PERIOD
YEAR Cash Flow A Cash Flow B
0 -50,000 -70,000
1 30,000 9,000
2 18,000 25,000
3 10,000 35,000
4 5,000 425,000
Rabat Fertilizer has the following two projects available, should they accept either of them?
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DISCOUNTED PAYBACK PERIOD
An investment project has annual cash inflows of $7,000; $7,500; $8,000 and $8,500 and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $,12000?
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AVERAGE ACCOUNTINGRATE OF RETURN (ARR)
Average annual income = average cash flow – average annual depreciation
Average investment = (cost + salvage value)/2
ARR = average annual income/ average investment
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AVERAGE ACCOUNTINGRATE OF RETURN (ARR)
Average annual income = average cash flow – average annual depreciation
Average investment = (cost + salvage value)/2
ARR = average annual income/ average investment
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NET PRESENT VALUE(NPV)
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NET PRESENT VALUE(NPV)
YEAR Project A Project B
1 $ 5,000,000 $ 20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
Your decision is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investment will produce the following net cash flows:
What are the two projects’ net present value (NPV), assuming the cost of capital is 10 percent? 5 percent?
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Internal Rate of Return(IRR)
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Internal Rate of Return(IRR)
Your decision is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investment will produce the following net cash flows:
YEAR Project A Project B
1 $ 5,000,000 $ 20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
What are the two projects’ internal rate of return (IRR)?
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Modified Internal Rate of Return (MIRR)
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Modified Internal Rate of Return (MIRR)
Your decision is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investment will produce the following net cash flows:
YEAR Project A Project B
1 $ 5,000,000 $ 20,000,000
2 10,000,000 10,000,000
3 20,000,000 6,000,000
Calculate the MIRR for each project!