2. a form of asset accumulation
with an expectation of future
benefit
Definition
of Also called investment or
Investment capital formation which is a
second component that
determines the level of
aggregate expenditure.
Can be defined as expenditure or shopping
or venture-capital investment company to
purchase capital goods and the tools they
need to add the ability to produce goods
and services are available in the economy

3. Investment
Securities
Products
an instrument of ownership
form that can be transferred in
the form of securities, stocks /
bonds, evidence of debt
(Promissory Notes), interest or
participation in a collective
agreement (mutual funds), the
right to buy a stock (Rights),
guarantees to buy the stock at
future or that the instrument
can be traded.

4. autonomous investment
The function
of investment
Induced Investment.

5. land investment
Types of education
Investment investment
investments in
shares

6. DECISION TO INVEST
R>i
Investment R<i
R=i
• If R > i then the company will invest
• If R < i then the decision is taken not to hold an
investment company.
• If R = i then the company can implement some
investment or not depends on the future
economic prospects.

7. Rate of Return
Description:
M = value of capital invested
Y1, Y2, Y3 = net income (profit) earned fr
om year 1 to year n
R = the return on capital

8. Production Assessment
Method
• Payback Period
• Benefit/Cash Ratio
• Net Present Value
• Internal Rate of Return

9. Benefit Method and cost rasio
This method is used to evaluate the feasibility
project by comparing the total benefits
of the total costs have been discounted to the year
basis by using the discount rate
(discount rate) during the plan year. This method
there are two
formula is:
• Net Benefit Cost Ratio (Net B/C) Net B/C
• Gross Benefit Cost Ratio (Gross B/C) Gross B/C

10. The meaning of the NPV calculation for investment
decisions to be made​​.
If… It means… Then…
NPV > 0 the investment would add value to the project may be accepted
the firm
NPV < 0 the investment would subtract the project should be rejected
value from the firm
NPV = 0 the investment would neither gain We should be indifferent in the
nor lose value for the firm decision whether to accept or
reject the project. This project adds
no monetary value. Decision should
be based on other criteria, e.g.
strategic positioning or other
factors not explicitly included in the
calculation.

11. Advantages and Disadvantages of the NPV
method :
Advantages of NPV Method Disadvantage of NPV Method
a) Tells whether the investment will a) Requires an estimate of the cost of
increase his firm’s value capital in order to calculate the
b) Considers the time value of money net present value
c) Considers all the cash flow b) With the NPV method, the
d) Considers the risk of future cash disadvantage is that the project
flow (through the cost of capital) size is not measured.
c) Degree of feasibility is not only
affected by cash flow, but also is
affected by the age of project
economically
d) Expressed in terms of dollars, not
as percentage

12. Expected Rate of Return
Investment costs
Marginal Efficiency of Capital (MEC)
Marginal Efficiency of Investment (MEI)
Factors Affecting
Investment Interest Rate
Expenditures Forecast future condition
Changes and technological
developments
Level of national income and its
changes
The company achieved profits

13. Present Value Calculation Methods
and Investment Decisions
The advantage of investing in the percentage
of r is also called the marginal efficiency of
investment (MEI = r)
MEI = The results is expected = R =r
Price of capital goods C

14. Marginal Efficiency of Investment
(MEI)

15. Marginal Efficiency of Capital (MEC), Investment
and Interest Rates
Investment Plan Funding is needed (in The expected rate of
billions of rupiah) return (MEC)
(in percent / year)
chemical industry 3000 35
textile industry 2500 31
food industry 1750 24
Agriculture industry 1000 20
Light Industry 750 15

16. Relation of MEC and Investment
Relation diagrams of MEC and Investment Plan
35
30
25 Relation diagrams of MEC
and Investment Plan
20
15
10
5
0
3000 2500 1750 1000 750

17. Relation of MEC and MEI

18. Thank you for your
attention 