Scenario

Effective tax rate

Pretax cost of debt
After-tax cost of debt
NPV of loan (borrow-andbuy)
IRR of loan (borrow-andbuy)
Leasing option #1
After Tax Lease Payment
NPV of leasing option #1
IRR of lease
Lease advantage over
borrowing
Leasing option #2
After Tax Lease Payment
NPV of leasing option #2
IRR of lease
Lease advantage over
borrowing
Leasing option #3
After Tax Lease Payment
NPV of leasing option #3
IRR of lease
Lease advantage over
borrowing
Leasing option #4
After Tax Lease Payment
NPV of leasing option #4
IRR of lease
Lease advantage over
borrowing

A
34.0%
9.5%
6.27%

B
34.0%
13.0%
8.58%

C
0.0%
9.5%
9.50%

D
0.0%
13.0%
13.00%

$469,273

$484,546

$663,800

$671,25
3

6.27%

8.58%

9.50%

13.00%

$155,04
0
$102,32
6
454,717
5.32%

$155,04
0
$102,32
6
436,915
5.32%

$155,04
0
$155,04
0
651,863
13.01%

$155,0
40
$155,0
40
616,202
13.01%

$14,556

$47,631

$11,937

$55,051

$160,00
3
$105,60
2

$160,00
3
$105,60
2

$160,00
3
$160,00
3

$469,273
6.27%

$450,901
6.27%

$672,730
14.43%

$160,0
03
$160,0
03
$635,92
7
14.43%

$33,645

($8,930)

$35,326

$162,35
0
$107,15
1

$162,35
0
$107,15
1

$162,35
0
$162,35
0

$476,156
6.72%

$457,515
6.72%

$682,598
15.11%

$162,3
50
$162,3
50
$645,25
5
15.11%

($6,883)

$27,031

($18,798)

$25,998

$164,76
0
$108,74
2

$164,76
0
$108,74
2

$164,76
0
$164,76
0

$483,225
7.19%

$464,306
7.19%

$692,730
15.81%

$164,7
60
$164,7
60
$654,83
4
15.81%

($13,952)

$20,240

($28,930)

$16,419

$0

Faulhaber Gmbh
NPV of loan
NPV of lease
IRR of lease
Lease advantage over
borrowing

484,376
501,993
498,593
479,073
7.13%
7.13%
($14,21
7) $22,920

686,679
714,762
11.42%
($28,08
2)

697,207
675,660
11.42%
$21,54
6

Honshu Heavy Industries

NPV of loan
NPV of lease
IRR of lease
Lease advantage over
borrowing

438,036
478,063
8.64%
($40,02
7)

624,641
685,330
13.48%
($60,68
9)

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

458,436
459,346
8.64%
($911)

NPV Analysis With Different Lease Payments and Tax Rate:

Tabel 1
Calculation Sample of Table 1
Forgone
Tax

Lease
Payment
after

Savings
Associated
with
Depreciatio
n2

Year

Tax2

($105,602)

($105,602) ($48,620)

($105,602) ($77,792)

($105,602) ($46,675)

($105,602) ($28,005)

5
IRR

$0

Lease
Forgone
Residual
Value

Initial

Payment

Purchase

after

Price

Less
Incrementa
l

Tax2

Saved

Cash Flow

$715,000

$609,398
($154,22
2)
($183,39
4)
($152,27
7)
($133,60
7)
($95,204
)
6.27%

($28,005) ($67,199)

Lease
Lease

Forgone
Tax

Payment

Savings

Forgone
Residual
Value

Initial

Payment

Purchase

Less

after
Year

0
1
2
3
4

Tax2

Associated
with
Depreciatio
n2

($162,35
0)
($162,35
0)
($162,35
0)
($162,35
0)
($162,35
0)

5
IRR

after

Price

Incrementa
l

Tax2

Saved

Cash Flow

$715,000

$552,650
($162,35
0)
($162,35
0)
($162,35
0)
($162,35
0)
($182,16
0)
15.11%

$0
$0
$0
$0

$0

$0

($182,16
0)

Lease
Forgone
Tax

Lease
Payment
after
Year

0
1
2
3
4

Tax2

($164,76
0)
($164,76
0)
($164,76
0)
($164,76
0)
($164,76
0)

5
IRR

Tax rate:
Pretax interest

Savings
Associated
with
Depreciatio
n2

$0

34.00%
9.50%

Equipme
nt cost:
Lease

Forgone
Residual
Value

Initial

Payment

Purchase

after

Price

Less
Incrementa
l

Tax2

Saved

Cash Flow

$715,000

$550,240
($164,76
0)
($164,76
0)
($164,76
0)
($164,76
0)
($182,16
0)
15.81%

$0
$0
$0
$0
$0

$759,00
0
$170,00

($182,16
0)

rate:

Year
0
1
2
3
4
5
Sum
NPV

payment:

Interest
Payment
after
Tax2

Principal
Payment2

FiveYear
MACRS3
Depr.
Rate

$47,589
$39,716
$31,095
$21,655
$11,319
$151,375

$125,566
$137,495
$150,557
$164,860
$180,522
$759,000

20.00%
32.00%
19.20%
11.52%
11.52%
94.24%

Tax rate:
Pretax interest
rate:

Equipm
ent
34.00%
cost:
Lease
payme
9.50%
nt:

Interest
Payment
after
Yea
r

Tax2

Principal
Payment
2

Depr.
before
Tax

Depr.
Tax
Savings

Residual
Cash Flow
after
Tax4

$151,800
$242,880
$145,728
$87,437
$87,437
$715,282

($51,612)
($82,579)
($49,548)
($29,729)
($29,729)
($243,196)

($90,005)
($90,005)

$46,210

$38,565

$30,194

$21,028

5
Su
m
NP
V

$10,991
$146,98
7

$121,92
7
$133,51
0
$146,19
3
$160,08
1
$175,28
9
$737,00
0

Depr.
before

Depr.
Tax

Residual
Cash
Flow
after

Rate

Tax

Savings

Tax4

19.20%

$147,40
0 ($50,116)
$235,84
0 ($80,186)
$141,50
4 ($48,111)

11.52%

$84,902 ($28,867)

11.52%

$84,902 ($28,867)
$694,54 ($236,14
9
7)

32.00%

94.24%

Loan
Cash
Outflow
5

$91,889
$128,27
6
$152,24
2

Lease
Cash
Outflow
6
$107,58
0
$107,58
0
$107,58
0
$107,58
0
$107,58
0

$26,239
$516,66
7
$438,0
36

$0
$537,90
0
$478,0
63

$163,0
00

FiveYear
MACRS
3
Depr.

20.00%

Lease
Cash
Outflow6
$112,200
$112,200
$112,200
$112,200
$112,200
$0
$561,000
$498,593

$737,0
00

0
1

Loan
Cash
Outflow5
$0
$121,544
$94,632
$132,105
$156,787
$72,107
$577,174
$484,376

$0
$118,02
1

($131,17
4)
($131,17
4)

Sensitivity Analysis dengan Cost of Capital dan Tax Rate yang

berbeda
Option 1:

Option 2:

Option 3:

Option 4:
Net Advantage of Leasing Determined by Cost of Capital and Tax
Rate
Tax
Cost of Capital
13.00
9.50% 10.00% 10.50% 11.00% 11.50% 12.00% 12.50%
%
(13,952
34%
)
(8,872) (3,858) 1,089
5,971 10,790 15,546 20,240
(17,464
25%
)
(11,868) (6,354) (923)
4,429
9,702 14,899 20,020
(21,757
15%
)
(15,628) (9,601) (3,673) 2,158
7,893 13,535 19,086

0%

(28,930
)
(22,074) (15,349) (8,752) (2,280)

4,071

10,303 16,419

Perbandingan NPV Lease antara Primus dengan Faulhaber Gmbh

Option 3
:
Net Advantage of Leasing Determined by Cost
(AvantJet)
Tax
Cost of Capital
10.00
9.50%
% 10.50% 11.00% 11.50%
22,30
34%
22,437
7
22,178 22,051 21,926
24,95
25%
25,117
4
24,794 24,636 24,479
27,80
15%
28,004
2
27,604 27,408 27,215
31,89
0%
32,164
9
31,639 31,384 31,133
Option 4

of Capital and Tax Rate

12.00% 12.50% 13.00%

21,802

21,679

21,558

24,325

24,173

24,023

27,026

26,839

26,655

30,886

30,643

30,405

Net Advantage of Leasing Determined by Cost

(Avantjet)
Tax
Cost of Capital
10.00
9.50%
% 10.50% 11.00% 11.50%
15,27
34%
15,368
9
15,191 15,104 15,018
17,09
25%
17,204
3
16,983 16,875 16,768
19,04
15%
19,182
4
18,907 18,774 18,642
21,85
0%
22,031
0
21,672 21,497 21,325

of Capital and Tax Rate

12.00% 12.50% 13.00%

14,933

14,850

14,767

16,662

16,558

16,455

18,512

18,384

18,258

21,156

20,990

20,826

Perbandingan NPV Lease antara Primus dengan Heavy Industries

Option 3

Net Advantage of Leasing Determined by Cost of Capital and Tax Rate

(AvantJet)
Tax
Cost of Capital
10.00
9.50%
%
34%
1,906
1,895
25%
2,134
2,120
15%
2,379
2,362
0%
2,733
2,710
Option 4

10.50%
1,884
2,107
2,345
2,688

11.00%
1,874
2,093
2,329
2,667

11.50%
1,863
2,080
2,312
2,645

12.00%
1,852
2,067
2,296
2,624

12.50%
1,842
2,054
2,280
2,604

13.00%
1,832
2,041
2,265
2,583

Net Advantage of Leasing Determined by Cost of Capital and Tax Rate

(Avantjet)
Tax
Cost of Capital
10.00
9.50%
%
10.50% 11.00% 11.50% 12.00% 12.50% 13.00%
(5,132
34%
(5,162)
)
(5,102) (5,073) (5,044) (5,016) (4,988) (4,960)
(5,741
25%
(5,779)
)
(5,704) (5,668) (5,632) (5,596) (5,561) (5,527)
(6,396
15%
(6,443)
)
(6,351) (6,306) (6,261) (6,218) (6,175) (6,132)
(7,339
0%
(7,400)
)
(7,279) (7,220) (7,163) (7,106) (7,050) (6,995)
Dari perhitungan di Tabel 1 diperoleh bahwa pada rate rax 34%
penggunaan lease oleh Avantjet akan lebih favorable dibanding
dengan buy and borrow apabila cost of capital lebih besar atau
sama dengan 9.5% dan annual payment sebesar atau lebih kecil

dari $160,003.
Begitupula pada tax rate 0%,dan cost of capital sebesar 9.5%,
annual payment pada option 1 akan menyebabkan Avantjet lebih

memilih lease payment dibanding dengan loan

Pada cost of capital 13% maka karena cost of debt sudah sangat
mahal

sehingga

lease

payment

akan

lebih

menguntungkan

dibanding dengan loan pada semua opsi baik pada tax bracket 34%

maupun 0%
Sehingga Primus dalam hal ini akan lebih memberikan proposal
antara option 3 dan 4, dikarenakan pad opsi 1, Primus akan
mengalami kerugian akibat pembayaran lease payment yang jauh
lebih rendah apabila Avantjet melakukan loan/buy and borrow, Opsi

2 juga tidak terlalu menguntungkan untuk Primus berikan karena

akan sangat menguntungkan Avantjet.

Hal ini diperkuat dengan melakukan sensitivity analysis dengan
menggunakan cost capital dan tax rate yang berbeda-beda,
diperoleh

dari

perhitungan

tersebut

bahwa

atas

semua

kemungkinan yang ada, opsi 3 dan 4 akan memberikan Primus

kemungkinan keuntungan yang lebih melalui lease agreement

kepada Avantjet.
Untuk mendapat kesimpulan proposal yang harus diberikan Primus
mengenai

perjanjian

lease-nya

kepada

Avantjet,

maka

perlu

dibandingkan Opsi 3 dan Opsi 4 dengan proposal yang diberikan

oleh competitor Primus, Faulhaber Gmbh dan Heavy Industries.
Dimana dengan menghitung selisih NPV pada berbagai tax bracket
dan cost capital yang berbeda didapat bahwa NPV lease pada Opsi 3
lebih menguntungkan bagi Avantjet dibanding apabila Avantjet
mengambil lease proposal dari kedua kompetitor Primus. Dimana
pada opsi 4, ada kelemahan oleh Primus, dimana lease proposalnya
kurang menarik dibanding dengan yang diberikan oleh Heavy
Industries sehingga ada kemungkinan Avantjet mengambil lease
kepada kompetitornya. Oleh karena itu opsi 3 dengan annual
payment $162,350 merupakan lease proposal yang paling
baik diberikan oleh Primus, dimana waktu leasing diberikan
selama 5 tahun dan dengan biaya equipment sebesar
$715,000. Dimana semakin kecil cost of capital dan semakin
tinggi tax rate akan semakin menguntungkan bagi Primus
melalui leasing agreement-nya dengan Avantjet.