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3. A project is estimated to require an initial investment of IDR 50,000,000. with the age of 6 years, the residual value of Rp. 4,000,000,-.
3. A project is estimated to require an initial investment of IDR 50,000,000. with the age of 6 years, the residual value of Rp. 4,000,000,-. The company is estimated to earn income of IDR 8,000,000 in the first year and an increase of IDR 1,000,000 every year until the 6th year. By using an interest rate of 10%, then: a. Determine whether the project is worth implementing or not (use method NPW)! b. Make a sensitivity analysis of the investment decision by changing it interest rates in the range of 50% of the estimated values above (use calculation of 20% and 50% of the initial interest rate)! (Score :15) C. Determine the limit on the value of the interest rate parameter resulting in a decision on the alternative was changed! (Score :10)
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