Question

Answer 1

Initial Outlay = Rp500.000.000

Cash flow of the project =

Year 1 = 237.734.666.667

Year 2 = 276.245.666.667

Year 3 = 351.650.666.667

NPV = 146.823.230.048

(Rp in 000)
Year	0	1	2	3
Purchase of Equipment	-500000000
Sales		800000000	943000000	990000000
Variable cost		440000000	518650000	544500000
Contribution		360000000	424350000	445500000
Fixed cost		40000000	46000000	52900000
Depreication		166666666.7	166666666.7	166666666.7
Administrative expense		200000	200000	200000
Net income before tax		153133333.3	211483333.3	225733333.3
Less- Tax @ 34%		52065333.33	71904333.33	76749333.33
Net income after tax		101068000	139579000	148984000
Add- Depreciation		166666666.7	166666666.7	166666666.7
Net Income		267734666.7	306245666.7	315650666.7
After tax sale proceeds				66000000
NWC		-30000000	-30000000	-30000000
Net Cash flow	-500000000	237734667	276245667	351650667
PVF (15%)	1	0.869565217	0.756143667	0.657516232
PVCF	-500000000	206725797.1	208881411.5	231216021.5
NPV	146823230