Materi Asistensi Keputusan Investasi Credit to Ross

1. Pertemuan 2
19 September 2012

2. Agenda Asistensi
• Investment Decision Criteria
– Net present value
– Payback period
– Discounted payback period
– Internal rate of return (IRR)
– Profitability Index
• Capital Budgeting

3. Net Present Value
• Something should be worth more than its cost
• NPV is the differences between the present
value of the future cash flow and the cost of
investment
• Discounted Cash Flow Valuation
• An investment should be accepted if the net
present value is positive and rejected if it is
negative

4. Payback Period & Discounted Payback
Period
• Payback Period
– Length of time it takes to recover the initial
investment (ignoring time value of money)
– An investment is accepted if its calculated payback
period is less than some pre specified of years
• Discounted Payback Period
– Fixes time value of money problem in Payback
Period

5. Internal Rate of Return
• Discount rate that makes the NPV of investment
zero
• An investment is acceptable if the IRR exceeds
the required return
• Problem:
– Mutually Exclusive Investment
– Non conventional cash flow
• Hitung IRR bisa trial and error, atau interpolasi
1 −
1 − 2
=
1 −
1 − 2

6. Profitability Index
• Present value of an investment’s future cash
flows divided by its initial cost
• An investment is acceptable if PI > 1

7. Capital Budgeting
• Project Cash Flow
• Project operating cash flow – Project change in net
working capital – Project capital spending
• Project Operating Cash Flow
• Earnings before interest and taxed + Depreciation
– Taxes
Year 0 Year 1 Year 2 Year 3
Operating Cash Flow - XXX XXX XXX
Changes in NWC (XXX) XXX
Capital Spending (XXX) XXX
Total Project Cash Flow (XXX) XXX XXX XXX
After Tax Gain