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NOTE: please provide with details formula and explanation even using Ms.Excel A financial analyst estimates an investment plan that will require Rp800 million in funds.

NOTE: please provide with details formula and explanation even using Ms.Excel

A financial analyst estimates an investment plan that will require Rp800 million in funds. The investment is estimated to have an economic life of 4 years. The estimated profit and loss for each year is as follows.

year 1 and year 2 year 3 and year 4
sales income IDR. 800.000.000 IDR. 865.000.000
cost
depreciation IDR. 165.000.000 IDR. 165.000.000
cash IDR. 100.000.000 IDR. 105.000.000
total cost IDR. 265.000.000 IDR. 270.000.000
profit before tax IDR. 535.000.000 IDR. 595.000.000
tax (35%) IDR. 187.250.000 IDR. 208.250.000
profit after tax IDR. 347.750.000 IDR. 386.750.000

At the end of year 4, it is estimated that a cash inflow terminal of Rp. 100 million will be obtained.

Question : a. what is the NPV of the investment, if r = 17%? b. what is the profitability index c. what is the average rate of return

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