1.

2.
3.
4.
5.
6.

7.
8.

Primus Automation
Primus Background
Avanjet
Permasalahan Finansial yang dihadapi
Avanjet
Analysis buy and borrow option
Variant Analysis
Conclusion
Recommendation

Merupakan perusahaan global yang menghasilkan

produk-produk inovative berupa automation system
products and services yang beroperasi di negaranegara : United States, Europe, and Asia.

Produk yang dihasilkan berupa :

Programmable controllers
Numerical controllers
Industrial computers
Manufacturing software
Factory-automation systems
Data communication networks

Sasaran perusahaan adalah : Memelihara kinerja

perusahaan sebagai pemimpin pasar dengan
meningkatkan
sales
15%/tahun
dengan
pencapaian target pada net income dan working
capital turnover
Kondisi yang dihadapi adalah :
1. Pertumbuhan ekonomi yang melambat
2. Meningkatnya persaingan
3. Aliansi yang bersifat cross continental
4. Muncul produk baru
5. Bergesernya transaksi dari pola penjualan menjadi
leasing

Pabrik pembuat corporate-jet aircraft.

Untuk melakukan cost reduction dan mempercepat
companys production line. Avantjet membutuhkan
automation system
Beberapa catatan penting dalam meningkatkan
kinerja :
Mempunyai permasalahan perimbangan Asset

dan Hutang yang high leveraged

CEO mempunyai kebijakan untuk tidak
mengeluarkan CAPEX yang akan berpengaruh
negatif terhadap the income statement and
balance sheet

Beberapa alternatif yang akan dilakukan Avantjet

untuk pengadaan automation sysytem adalah :
Melalui pinjaman
2. Pengadaan melalui conditional sale dimana kepemilikan
akan berpindah pada saat pembayaran final
3. Sistem sewa peralatan :
1. Capital Lease
2. Operating Lease
1.

Avantjet's Balance Sheet ($000)

Assets Current assets:
Cash and temporary investments
Accounts receivable
Inventories
Prepaid expenses
Total current assets
Property, plant, and equipment:
Land
Buildings
Machinery and equipment
Furniture and fixtures
Construction in progress
Less accumulated depreciation
Net property, plant, and equipment
Other assets
Total assets
Liabilities and stockholders' equity
Current liabilities:
Long-term debt
Accounts payable
Notes payable
Accrued comp., int. & other liabilities
Deposits and progress payments
Total current liabilities
Long-term notes payable to banks
Deferred income taxes
Common stockholders' equity:
Common stock
Capital in excess of par value
Retained earnings
Less common stock in treasury
Total stockholders' equity
Total liabilities and stockholders' equity

2001

2000

$19,918
37,791
310,180
13,928
381,817

$27,263
37,307
323,101
13,362
401,033

2,245
30,654
26,932
1,683
1,668
63,182
12,634
50,548
640,369
$1,072,734

2,245
30,229
21,244
1,520
885
56,123
8,267
47,856
648,339
$1,097,228

$592
42,355
4,750
39,627
146,964
234,288

$563
38,760
5,764
43,855
160,946
249,888

646,633
42,661
689,294

671,225
41,498
712,723

3,385
74,081
72,017
(331)
149,152
$1,072,734

3,027
69,770
62,156
(336)
134,617
$1,097,228

Avantjet's Statement of Income ($000)

Sales
Other income
Gross income
Cost of goods sold
Selling, general, & admin.
Research & development
Interest
Total expenses
Income before taxes
Taxes
Net income

2001

2000

1999

576,327
9,985
586,312
425,076
43,624
13,773
84,062
566,535
19,777
9,690
10,087

575,477
6,976
582,453
423,443
36,215
12,873
87,259
559,790
22,663
11,105
11,558

432,522
9,677
442,199
325,016
35,632
9,064
27,002
396,714
45,485
22,288
23,197

Financial Ratio
Liquidity
Current Ratio
Acivity Ratio
Inventory Turnover
Average Collection Period (day)
Total Asset Turnover
Debt Ratio
Debt Ratio
Profitabilitas
Gross Profit Margin
Net profit Margin

2001

2000

1.63

1.60

1.37
23.61
0.54

1.31
23.34
0.52

86%

88%

27.50%
1.75%

27.30%
2.01%

Avantjet mempunyai ratio hutang

yang besar, sedang net profit
menurun
Pembelian dengan hutang akan
memperburuk kondisi keuangan

Te rm unde r hypothe tical le as ing & buy-borrow s trate gie s

Loan ("Buy-and-Borrow")
Equipment cost
$715,000
Cash down payment
$0
Loan amount
$715,000
Lease Annual payments 5-year
Payment/Year
Leasing option #1
$155,040
Leasing option #2
$160,003
Leasing option #3
$162,350
Leasing option #4
$164,760
Both Methods
Guaranteed residual value:
11.2729%
Investment tax credit
0%
Depreciation
5-year MACRS

5-year MACRS
Income Tax Depreciation
Rate Schedule
Year
Percentage
1
20.00
2
32.00
3
19.20
4
11.52
5
11.52

Proposal pengadaan dari kompetitor

System Manufacturer
Faulhaber Gmbh
Honshu Heavy Industries
Primus Automation Division

Purchase Price
if Avanjet were to buy
$ 759,000.00
$ 737,000.00
$ 715,000.00

Quoted Annual Lease Expenses

and Resd'l Value for 5 year
$ 170000, 15% residual value
$ 163000, 24% residual value
-

Option 1
Net Purchase Pri ce

Depreci ati on Tax Savi ngs

Lease Payment
Tax on Lease Payment
Resi dual Val ue
Tax on Resi dual Val ue
Net Cash Fl ow

-612,674

NPV
IRR

(23,002)
4.64%

Option 2
Net Purchase Pri ce
Depreci ati on Tax Savi ngs
Lease Payment
Tax on Lease Payment
Resi dual Val ue
Tax on Resi dual Val ue
Net Cash Fl ow
NPV
IRR

Option 3
Net Purchase Pri ce

155,040
-52,714

Tax on Lease Payment

48,620
155,040
-52,714

150,946

77,792
155,040
-52,714

180,118

46,675
155,040
-52,714

149,002

28,005
155,040
-52,714

130,332

160,003

48,620
160,003

77,792
160,003

46,675
160,003

28,005
160,003

-54,401

-54,401

-54,401

-54,401

-54,401

-609,398

NPV
IRR

Option 4
Net Purchase Pri ce

Tax on Lease Payment

154,222

183,394

152,277

133,607

48,620

77,792

46,675

28,005

162,350

162,350

162,350

162,350

162,350

-55,199

-55,199

-55,199

-55,199

-55,199

NPV
IRR

5
28,005

67,199
-13,402
81,803

-607,849

155,771

184,943

153,826

135,156

-13,402
81,803

(2,827)
6.07%

-715,000
48,620

77,792

46,675

28,005

164,760

164,760

164,760

164,760

164,760

-54,401

-54,401

-54,401

-54,401

-54,401

28,005

67,199
-604,641
10,587
7.02%

158,979

188,151

157,034

138,364

Primus prop.
Option-1
Option-2
Option-3
Option-4

NPV
(23,002)
(9,304)
(2,827)
10,587

IRR
4.64%
5.61%
6.07%
7.02%

28,005

67,199

Resi dual Val ue

Tax on Resi dual Val ue
Net Cash Fl ow

67,199
-13,402
81,803

-715,000

Depreci ati on Tax Savi ngs

Lease Payment

28,005

(9,304)
5.61%

Resi dual Val ue

Tax on Resi dual Val ue
Net Cash Fl ow

-715,000

Depreci ati on Tax Savi ngs

Lease Payment

-715,000

-13,402
81,803

Agar NPV = 0 dan

IRR = 6.27% maka
Lease payment harus
$163.375
Pada
Tax rate =34%
Cost of debt = 9.5%

Loan Amortization schedule

Borrowing
715,000
Interest
9.50%
Year
Beginning balance
Annual payment
186,212
Interest before tax
9.5%
Principal reduction
Ending balance
Tax rate
34%
Interest after tax

1
715,000
186,212
67,925
118,287
596,713

2
596,713
186,212
56,688
129,524
467,189

3
467,189
186,212
44,383
141,829
325,360

4
325,360
186,212
30,909
155,303
170,057

5
170,057
186,212
16,155
170,057
0

44,831

37,414

29,293

20,400

10,663

Annual Payment = PMT(Pretax Annual Rate, Term, -715000)

Untuk Leasing option #1,#2,#3 & #4

Tax rate
Pre tax interest
Year
0
1
2
3
4
5
Sum
NPV

34%
9.50%
Intrst. Paymt
After Tax
44,831
37,414
29,293
20,400
10,663
142,600

Eq cost
Disc rate
Principal
Payment
118,287
129,524
141,829
155,303
170,057
715,000

Deprc.
rate
20.00%
32.00%
19.20%
11.52%
11.52%

715,000
6.27%
Deprc.
before Tax
143,000
228,800
137,280
82,368
82,368
673,816

Deprc. Tax
Tax Saving
(48,620)
(77,792)
(46,675)
(28,005)
(28,005)
(229,097)

Residual CF
After Tax

(67,199)
(67,199)

Loan Cash
Outflow
114,498
89,146
124,447
147,698
85,515
561,303

469,273

155,040
102,326
102,326
102,326
102,326
102,326

Lease Cash Outflow

160,003 162,350
105,602 107,151
105,602 107,151
105,602 107,151
105,602 107,151
105,602 107,151

511,632 528,010
454,717 469,273

535,755
476,156

164,760
108,742
108,742
108,742
108,742
108,742
543,708
483,225

Tax rate
Pre tax interest
Lease payment
Year
0
1
2
3
4
5
Sum
IRR
Lease payment
Year
0
1
2
3
4
5
Sum
IRR
Lease payment
Year
0
1
2
3
4
5
Sum
IRR
Lease payment
Year
0
1
2
3
4
5
Sum
IRR

34%
Equity cost
9.50%
155,040
Lease Pay
Tax Savings
After Tax
Assc. with Deprc.
(102,326)
(102,326)
(48,620)
(102,326)
(77,792)
(102,326)
(46,675)
(102,326)
(28,005)
0
(28,005)
(511,632)
(229,097)
5.32%
160,003
Lease Pay
After Tax
(105,602)
(105,602)
(105,602)
(105,602)
(105,602)
0
(528,010)
6.27%
162,350
Lease Pay
After Tax
(107,151)
(107,151)
(107,151)
(107,151)
(107,151)
0
(535,755)
6.72%
164,760
Lease Pay
After Tax
(108,742)
(108,742)
(108,742)
(108,742)
(108,742)
0
(543,708)
7.19%

Tax Savings
Assc. with Deprc.
(48,620)
(77,792)
(46,675)
(28,005)
(28,005)
(229,097)

Tax Savings
Assc. with Deprc.
(48,620)
(77,792)
(46,675)
(28,005)
(28,005)
(229,097)

Tax Savings
Assc. with Deprc.
(48,620)
(77,792)
(46,675)
(28,005)
(28,005)
(229,097)

715,000

Leasing Payment
Forgone Resid.
Value After Tax

(67,199)
(67,199)

Forgone Resid.
Value After Tax

(67,199)
(67,199)

Forgone Resid.
Value After Tax

(67,199)
(67,199)

Forgone Resid.
Value After Tax

(67,199)
(67,199)

Initial Purch.
Price Save
715,000

715,000

Initial Purch.
Price Save
715,000

715,000

Initial Purch.
Price Save
715,000

715,000

Initial Purch.
Price Save
715,000

715,000

Lease Paym.
- Incr. Cash Flow
612,674
(150,946)
(180,118)
(149,002)
(130,332)
(95,204)
(92,929)

Lease Paym.
- Incr. Cash Flow
609,398
(154,222)
(183,394)
(152,277)
(133,607)
(95,204)
(109,307)

Lease Paym.
- Incr. Cash Flow
607,849
(155,771)
(184,943)
(153,826)
(135,156)
(95,204)
(117,052)

Lease Paym.
- Incr. Cash Flow
606,258
(157,362)
(186,534)
(155,417)
(136,747)
(95,204)
(125,005)

155,040
160,003
162,350
164,760

NPV over
buy & Borrow
14,556.03
0
(6,883.48)
(13,951.77)

IRR over
buy & Borrow
5.32%
6.27%
6.72%
7.19%

Pada lease payment

$160.003
Leasing akan sama
pengaruhnya dengan
buy & borrow

Scenario

Eff.tax rate
Pretax cost of debt
After-tax cost of

34.00%
9.50%
6.27%

34.00%
13.00%
8.58%

0.00%
9.50%
9.50%

0.00%
13.00%
13.00%

NPV of loan (borrow-and-buy)

IRR of loan (borrow-and-buy)
Leasing option #1
NPV of lease
IRR of lease
Lease advantage over bor.&by
Leasing option #2
NPV of lease
IRR of lease
Lease advantage over bor.&by
Leasing option #3
NPV of lease
IRR of lease
Lease advantage over bor.&by
Leasing option #4
NPV of lease
IRR of lease
Lease advantage over bor.&by

$469,273
6.27%
$155,040
$454,717
5.32%
$14,556

484,546
8.58%
$155,040
436,915
5.32%
47,632

$663,800
9.50%
$155,040
651,863
8.61%
$11,937

$671,253
13.00%
$155,040
616,202
8.61%
$55,051

$469,273
6.27%
$0

$450,901
6.27%
33,645

$672,730
10.17%
-8,930

$635,927
10.17%
$35,326

$476,156
6.72%
-6,884

$457,515
6.72%
27,031

$682,598
10.91%
-18,798

$645,255
10.91%
$25,997

$483,225
7.19%
-13,952

$464,306
7.19%
20,240

$692,730
11.68%
-28,930

$654,834
11.68%
$16,419

Pada tax rate = 0, akan

memperbaiki posisi
leasing
Naiknya cost of debt
memperbaiki posisi
leasing

Scenario

Eff.tax rate
Pretax cost of debt
After-tax cost of debt

34.00%
9.50%
6.27%

34.00%
13.00%
8.58%

0.00%
9.50%
9.50%

0.00%
13.00%
13.00%

NPV of loan (borrow-and-buy)

IRR of loan (borrow-and-buy)
Faul haber Gmbh
NPV of loan (borrow-and-buy)
NPV of lease
IRR of lease
Lease advantage over borrowing
Honshu
NPV of loan (borrow-and-buy)
NPV of lease
IRR of lease
Lease advantage over borrowing

$469,273
6.27%

484,546
8.58%

$663,800
9.50%

$671,253
13.00%

484,376
498,593
7.13%
(14,218)

501,993
479,073
7.13%
22,920

686,679
714,762
11.42%
(28,082)

697,207
675,660
11.42%
21,547

438,036
478,063
7.13%
(40,027)

458,436
459,346
8.64%
(911)

624,641
685,330
13.48%
-60,689

$640,997
$647,839
13.48%
(6,842)

Option III vs Faulhaber

Tax
Pretax Interest
9.50%
10.0%
40%
6,887 25,113
34%
7,334
5,940
25%
7,941
5,426
15%
8,536
4,599

10.5%
26,274
2,804
1,529
(200)

11.0%
14,314
(5,597)
(8,140)
(11,286)

11.5%
16,350
(3,355)
(6,104)
(9,575)

12.0%
13,479
(6,378)
(9,842)
(14,154)

12.5%
10,633
(9,365)
(13,529)
(18,663)

13.0%
7,812
(12,317)
(17,166)
(23,102)

Option IV vs Faulhaber
Tax
Pretax Interest
9.50%
10.0%
40%
396
(343)
34%
265
(1,128)
25%
29
(2,487)
15%
(287) (4,223)

10.5%
(3,004)
(4,264)
(6,384)
(9,022)

11.0%
(10,566)
(12,665)
(16,052)
(20,108)

11.5%
(8,237)
(10,423)
(14,017)
(18,397)

12.0%
(10,811)
(13,447)
(17,755)
(22,976)

12.5%
(13,356)
(16,434)
(21,442)
(27,485)

13.0%
(15,874)
(19,385)
(25,079)
(31,924)

Option III vs Honshu

Tax
40%
34%
25%
15%

9.50%
31,115
33,143
35,893
38,565

10.0%
49,095
31,448
32,987
34,134

10.5%
50,014
28,017
28,710
28,854

Pretax Interest
11.0%
11.5%
37,586
39,622
19,045
21,287
18,307
20,343
16,844
18,555

12.0%
36,524
17,987
16,251
13,532

12.5%
33,456
14,730
12,218
8,591

13.0%
30,417
11,514
8,244
3,730

10.5%
20,737
20,948
20,797
20,032

Pretax Interest
11.0%
11.5%
12,706
15,035
11,976
14,219
10,394
12,430
8,022
9,732

12.0%
12,235
10,919
8,338
4,709

12.5%
9,467
7,662
4,306
(231)

13.0%
6,731
4,446
331
(5,092)

Option IV vs Honshu
Tax
40%
34%
25%
15%

9.50%
24,624
26,075
27,980
29,743

10.0%
23,639
24,380
25,075
25,312

1.

2.

3.

4.

Dari keempat option yang akan diambil untuk tax rate 34 %

dan cost of debt 9.5 % hanya pada option 4 untuk leasing
payment 164,760 yang memberikan IRR diatas cost of capital
(discount rate) terkecuali pada tax rate diatas 40 % option 3
bisa dijadikan pilihan.
Untuk Avanjet pada tax rate 34 % dan pretax interest 9.5 %
untuk lease payment dibawah 160,003 akan lebih
menguntungkan dibandingkan dengan buy & borrow
dengan selisih NPV = 0 dan IRR = after tax interest
Bahwa tax rate 0 % atau naiknya pretax interest akan
memperbaiki posisi option leasing dibandingkan dengan buy
& borrow.
Untuk option 1 dan 2 option leasing lebih baik daripada buy
& borrow kecuali pada tax = 0 %, pada option leasing mulai
menguntungkan pada tax rate diatas 40 % dengan pretax
diatas 10%

Untuk option 3 leasing option lebih menguntungkan pada : - - Tax 34 % dengan pretax interest diatas 11 %
- Tax 40 % dengan pretax interest diatas 10 %
6. Dibandingkan dengan Faulhaber untuk option 3 lebih
menguntungkan pada :
- Tax 34 % dengan pretax interest dibawah 10.5%
- Tax 40 % dengan berapapun pretax interest
Sedangkan untuk option 4 lebih menguntungkan dengan tax
rate diatas 25 % dan pretax interest sama dengan atau
dibawah 9.5 %
7. Jika dibandingkan dengan Honshu option 3 dan option 4
lebih menguntungkan dengan semua tax dan pretax
interest kecuali dioption 4 dengan pretax diatas 12.5 %
honshu lebih diuntungkan.
5.

Berdasarkan dari analisa perhitungan bahwa proposal yang

harus diajukan pada Avanjet direkomendasikan pada Option 3
dengan syarat :
Lease payment per tahun $ 162,350
Waktu leasing adalah 5 tahun
Tax ratenya diatas 40%
Tax rate 25% dan 34% dengan pretax interest
10.5%, sedangkan tax rate 15% , pretax interest yang
digunakan 10%

TERIMA KASIH