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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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