Question
Following are the results of the analysis of capital budgeting starting from Net Present Value (NPV), Present Value Cash Inflow (PVCI), Profitability Index (PI) and
Following are the results of the analysis of capital budgeting starting from Net Present Value (NPV), Present Value Cash Inflow (PVCI), Profitability Index (PI) and Market Beta.
Mineral Industry Case
| Company name | Initial Investment | NPV | PVCI | PI | Market Beta |
| Neutral | Rp400.000.000 | Rp250.000.000 | Rp150.000.000 | 2,67 | 1,60 |
| Aqua | Rp900.000.000 | Rp550.000.000 | Rp350.000.000 | 2,57 | 1,10 |
| Mineral | Rp350.000.000 | Rp200.000.000 | Rp150.000.000 | 2,33 | 0,80 |
| Total | Rp450.000.000 | Rp250.000.000 | Rp200.000.000 | 2,25 | 0,60 |
| Bonaqo | Rp600.000.000 | Rp300.000.000 | Rp300.000.000 | 2,00 | 0,78 |
| Ades | Rp500.000.000 | Rp250.000.000 | Rp250.000.000 | 2,00 | 1,22 |
| Jernih | Rp700.000.000 | Rp300.000.000 | Rp400.000.000 | 1,75 | 0,77 |
| Zam Zam | Rp250.000.000 | Rp100.000.000 | Rp150.000.000 | 1,67 | 1,11 |
| Milan | Rp50.000.000 | Rp5.000.000 | Rp45.000.000 | 1,11 | 0,50 |
Based on the results of the analysis, you are asked to provide an analysis or agurmentation review of the competitive conditions of the Mineral Industry based on the NPV, PVCI, PI and Market Beta values mentioned above.
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
2nd Edition
0812043731, 978-0812043730
