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MAKALAH UNTUK TOPIK INVESTASI

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MAKALAH UNTUK TOPIK INVESTASI Powered By Docstoc
					©samuel



Chapter 10
Topics in Capital Budgeting
[To evaluate investment proposals]


Cash flows of a project
    Initial outlay
    Differential flows over a project’s life
    Terminal cash flow



Initial Outlay
    Installed cost of asset
    Additional non-expense outlays incurred
     [for example, working-capital investment]


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    Additional expenses on a after-tax basis
     [for example, training expenses]
    In a replacement decision, the after-tax cash flow associated with the
     sale of the old machine
     (See Table 10.2)


Differential Flows over a Project’s Life
    Added revenue offset by increased expenses
    Labor and material savings
    Increases in overhead incurred
    Tax saving from an increase in depreciation expense if the new project
     is accepted
    Do not include interest expenses if the project is financed by issuing
     debt, as this is accounted for in the required rate of return

     Example: Tables 10.4, 10.5



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Terminal Cash Flow
    The after-tax salvage value of the project
    Cash outlays associated with the project’s termination
    Recapture of non-expense outlays that occurred at the project’s initiation
     (for example, working- capital investment)

     [See Figure 10.1 for a cash flow diagram]

Comprehensive example: p. 368




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Exercises

10-1A [a] Tax payments = ($35,000-$15,000) x 0.34
                       = $6,800

          [b] Tax payments = ($25,000-$15,000) x 0.34
                           = $3,400

          [c] Tidak ada pajak, karena mesin dijual dengan harga sebesar nilai bukunya.

          [d] Tax savings   = ($15,000-$12,000) x 0.34
                            = $1,020




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10-2A     Initial Outlay

          Outflows:
            Cost of machine                     $55,000
            Installation                          5000

          Inflows:
             Tax savings (15,000-10,000)(.34)     1,700
             Salvage value –old machine          10,000

          Net initial outlay                    $48,300




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Differential flows over the project’s life

                                       Book profit   Cash flow
  Savings: reduced salary               $20,000      $20,000
           reduced defects                3,000        3,000

  Costs: increased maintenance     -1,000              -1,000
          increased depreciation
            expense (12,000-3,000) -9,000
  Net savings before tax          $13,000            $22,000
  Tax, 34%                         -4,420            -4,420
  Annual net cash flow after tax                     $17,580


  Note: annual depreciation = ($55,000+$5,000)/5 = $12,000

Terminal cash flow
  Salvage value – new machine                 $0




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10-3A
[a] Payback period = 48,3000/17,580 = 2.75 years

                   n
                         ACF
[b]   NPV =        (1  kt) t      - IO
                  t 1

                  5
                 $17,580
      NPV =                 - $48,300
            t 1 (1 
                      .15 )t

           = $17,580(3.352) - $48,300
           = $58,928.16 - $48,300 = $10,628.16
[c]   PI = 58,928.16/48,300 = 1.22

              n
                         ACF
[d]   IO =                  t
                      (1  IRR )t
             t 1


      $48,300 = $17,580 [PVIFAIRR%, 5 yrs]
      2.75 = PVIFAIRR%, 5 yrs
      IRR  24%

Conclusion: The project should be accepted since NPV>0, PI>1.0, and IRR>15%.


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10-4A

[a]   Initial Outlay

      Outflows:
       Purchase price              $100,000
       Installation fee               5,000
       Increased working inventory    5,000
            Net initial outlay     $110,000




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[b]   Differential annual cash flows (years 1-9)

                                       Book profit        Cash flow
      Savings:
        Reduction in labor costs         $35,000           $35,000

      Costs:
        Increased depreciation           -10,500
      Net savings before tax             $24,500           $35,000
      Tax, 34%                            -8,330           -8,330
      Annual net cash flow after tax                       $26,670

      Note:
      annual depreciation = ($100,000+$5,000)/10 = $10,500

[c]   Terminal cash flow in year 10

      Inflows:
          Differential flow in year 10                   $26,670
          Recapture of working capital (inventory)         5,000
                Total terminal cash flow                 $31,670




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[d]   NPV = $26,670 (PVIFA15%, 9 yrs) + $31,670 (PVIF15%, 9 yrs) - $110,000

      NPV = $26,670(4.772) + $31,670(0.247) - $110,000
          = $25,091

      Thus, the machine should be purchased.




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Description: TOPIK INVESTASI ADALAH CONTOH MAKALAH UNTUK ANDA YANG MEMERLUKAN