PAYBACK PERIOD

DISCOUNTED PAYBACK

NET PRESENT VALUE

AVERAGE ACCOUNTING RATE OF RETURN

INTERNAL RATE OF RETURN

MODIFIED INTERNAL RATE OF RETURN

PAYBACK PERIOD

TAHUN CASH FLOW

1 Rp 30 juta

2 Rp 35 juta

3 Rp 50 juta

Papa Ron’s Pizza melakukan investasi dengan membuka gerai pizza baru di Mataram. Investasi tersebut membutuhkan biaya Rp 100 juta. Pada tahun ke-berapa Papa Ron’s memperoleh tingkat pengembalian investasi? Berikut ini adalah prediksi aliran kas selama 3 tahun ke depan

PAYBACK PERIOD

YEAR Cash Flow A Cash Flow B

0 -50,000 -70,000

1 30,000 9,000

2 18,000 25,000

3 10,000 35,000

4 5,000 425,000

Rabat Fertilizer has the following two projects available, should they accept either of them?

DISCOUNTED PAYBACK PERIOD

An investment project has annual cash inflows of $7,000; $7,500; $8,000 and $8,500 and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $,12000?

AVERAGE ACCOUNTINGRATE OF RETURN (ARR)

Average annual income = average cash flow – average annual depreciation

Average investment = (cost + salvage value)/2

ARR = average annual income/ average investment

AVERAGE ACCOUNTINGRATE OF RETURN (ARR)

Average annual income = average cash flow – average annual depreciation

Average investment = (cost + salvage value)/2

ARR = average annual income/ average investment

NET PRESENT VALUE(NPV)

NET PRESENT VALUE(NPV)

YEAR Project A Project B

1 $ 5,000,000 $ 20,000,000

2 10,000,000 10,000,000

3 20,000,000 6,000,000

Your decision is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investment will produce the following net cash flows:

What are the two projects’ net present value (NPV), assuming the cost of capital is 10 percent? 5 percent?

Internal Rate of Return(IRR)

Internal Rate of Return(IRR)

Your decision is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investment will produce the following net cash flows:

YEAR Project A Project B

1 $ 5,000,000 $ 20,000,000

2 10,000,000 10,000,000

3 20,000,000 6,000,000

What are the two projects’ internal rate of return (IRR)?

Modified Internal Rate of Return (MIRR)

Modified Internal Rate of Return (MIRR)

Your decision is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investment will produce the following net cash flows:

YEAR Project A Project B

1 $ 5,000,000 $ 20,000,000

2 10,000,000 10,000,000

3 20,000,000 6,000,000

Calculate the MIRR for each project!