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Analisa Investasi (proyek)

(ekonomi teknik)

Hermanto Saliman

Unsur Keuangan
Investasi dan Biaya modal
-

Investasi adalah suatu istilah dengan beberapa pengertian yang


berhubungan dengan keuangan dan ekonomi. Istilah tersebut berkaitan
dengan akumulasi suatu bentuk aktiva dengan suatu harapan mendapatkan
keuntungan dimasa depan. Terkadang, investasi disebut juga sebagai
penanaman modal.
Berdasarkan teori ekonomi, investasi berarti pembelian (dan produksi) dari
modal barang yang tidak dikonsumsi tetapi digunakan untuk produksi yang
akan datang (barang produksi). Contohnya membangun rel kereta api atau
pabrik. Investasi adalah suatu komponen dari PDB dengan rumus PDB = C
+ I + G + (X-M). Fungsi investasi pada aspek tersebut dibagi pada investasi
non-residential (seperti pabrik dan mesin) dan investasi residential (rumah
baru). Investasi adalah suatu fungsi pendapatan dan tingkat bunga, dilihat
dengan kaitannya I= (Y,i). Suatu pertambahan pada pendapatan akan
mendorong investasi yang lebih besar, dimana tingkat bunga yang lebih
tinggi akan menurunkan minat untuk investasi sebagaimana hal tersebut
akan lebih mahal dibandingkan dengan meminjam uang. Walaupun jika
suatu perusahaan lain memilih untuk menggunakan dananya sendiri untuk
investasi, tingkat bunga menunjukkan suatu biaya kesempatan dari
investasi dana tersebut daripada meminjamkan untuk mendapatkan bunga.

Depresiasi

Depresiasi atau penyusutan dalam akuntansi adalah alokasi


sistematis jumlah yang dapat disusutkan dari suatu aset selama
umur manfaatnya.[1]. Penerapan depresiasi akan memengaruhi
laporan keuangan, termasuk penghasilan kena pajak suatu
perusahaan.
Metode yang paling mudah dan paling sering digunakan untuk
menghitung penyusutan adalah metode penyusutan garis lurus
(straight-line depreciation). Tapi selain itu, ada pula metode
penghitungan lain yang bisa juga digunakan, seperti metode
penyusutan dipercepat, penyusutan jumlah angka tahun, dan
saldo menurun ganda.
Metode Garis-lurus:

Revenue
-

Arus masuk bruto dari manfaat ekonomi yang timbul dari


aktivitas normal perusahaan selama satu periode, bila arus
masuk itu mengakibatkan kenaikan ekuitas, yang tidak
berasal dari kontribusi penanaman modal.
(Ikatan Akuntansi Indonesia (1999:233)

- In general usage, revenue is income received by an


organization in the form of cash or cash equivalents.
Sales revenue or revenues is income received from selling
goods or services over a period of time. Tax revenue is
income that a government receives from taxpayers.

Biaya
-

Biaya adalah semua pengorbanan yang perlu dilakukan untuk


suatu proses produksi, yang dinyatakan dengan satuan uang
menurut harga pasar yang berlaku, baik yang sudah terjadi
maupun yang akan terjadi. Biaya terbagi menjadi dua, yaitu biaya
eksplisit dan biaya implisit. Biaya eksplisit adalah biaya yang
terlihat secara fisik, misalnya berupa uang. Sementara itu, yang
dimaksud dengan biaya implisit adalah biaya yang tidak terlihat
secara langsung, misalnya biaya kesempatan dan penyusutan
barang modal.

Jenis Biaya
-

Biaya variabel
Biaya variabel memiliki karakteristik sebagai berikut :
1. Biaya yang jumlah totalnya akan berubah secara sebanding
(proporsional) dengan perubahan volume kegiatan, semakin besar volume
kegiatan semakin tinggi jumlah total biaya variabel, semakin rendah
volume kegiatan semakin rendah jumlah biaya variabel.
2. Pada biaya variabel, biaya satuan tidak dipengaruhi oleh volume
kegiatan, jadi biaya semakin konstan.

Biaya tetap
Biaya tetap memiliki karakteristik sebagai berikut :
1. Biaya yang jumlah totalnya tetap konstan tidak dipengaruhi oleh
perubahan volume kegiatan atau aktivitas sampai dengan tingkatan
tertentu.
2. Pada biaya tetap, biaya satuan (unit cost) akan berubah berbanding
terbalik dengan perubahan volume penjualan, semakin tinggi volume
kegiatan semakin rendah biaya satuan, semakin rendah volume
kegiatan
semakin tinggi biaya satuan.

Capex and Opex


(owning and operating cost)
- Capital expenditures (CAPEX or capex) are
expenditures creating future benefits. A capital
expenditure is incurred when a business spends
money either to buy fixed assets or to add to the
value of an existing fixed asset with a useful life
extending beyond the taxable year.
- operational expenditure (OPEX) is an ongoing
cost for running a product, business, or system.[1]
Its counterpart

owning and operating cost

Profit and loss


-

Profit dalam Bahasa Indonesia berarti keuntungan atau laba.


Profit diperoleh ketika TR (total revenue) lebih besar dari TC
(total cost).
Loss is adalah perbedaan negatif antara revenue dengan
biaya produksi .
Laba /Rugi dalam akuntansi didefinisikan sebagai selisih
antara harga penjualan dengan biaya produksi. Perbedaan
diantara keduanya adalah dalam hal pendefinisian biaya.
Laba/Rugi dalam ilmu ekonomi murni didefinisikan sebagai
peningkatan /penurunan kekayaan seorang investor sebagai
hasil penanam modalnya, setelah dikurangi biaya-biaya yang
berhubungan dengan penanaman modal tersebut
(termasuk di dalamnya, biaya kesempatan).

Pajak
dan

Pendapatan Negara Bukan Pajak (PNBP)


-

Pajak adalah iuran wajib yang dipungut oleh pemerintah dari masyarakat (wajib
pajak) untuk menutupi pengeluaran rutin negara dan biaya pembangunan tanpa
balas jasa yang dapat ditunjuk secara langsung.

Penerimaan Negara Bukan Pajak adalah seluruh penerimaan Pemerintah Pusat


yang tidak berasal dari penerimaan perpajakan.
Kelompok PNBP sesuai peraturan perundang-undangan meliputi:
a. Penerimaan yang bersumber dari pengelolaan dana Pemerintah;
b. Penerimaan dari pemanfaatan sumber daya alam;
c. Penerimaan dari hasil-hasil pengelolaan kekayaan negara yang
dipisahkan;
d. Penerimaan dari kegiatan pelayanan yang dilaksanakan Pemerintah;
e. Penerimaan berdasarkan putusan pengadilan dan yang berasal dari
pengenaan denda administrasi;
f.
Penerimaan lainnya yang diatur dalam Undang-undang tersendiri.
Contoh :
Royalty adalah bagian produksi atau penghasilan yg dibayarkan kpd orang yg
mempunyai hak memberi izin pengusahaan (eksplorasi) minyak, dsb;

PENGELOLAHAN BIAYA
(COST MANAGEMENT)
Perencanaa
n Sumber
Daya

Output
Keperluan Sumber Daya
perkegiatan

Perkiraan

Output
Estimasi Biaya
Data Pendukung

Biaya
Teknik & Metode
Bersangkutan
Budgeting

Pengendalia
n Biaya

Output
Budget perkegiatan
Renc. Penarikan Dana
Output
Tindakan Koreksi
Revisi angka Anggaran

Perkiraan Biaya
A.

Masukan
1. Lingkup dasar
2. Jadwal proyek
3. Perencanaan sumberdaya
4. Daftar resiko
5. Faktor lingkungan perusahaan
6. Proses aset organisasi

B.

Perangkat dan teknis


1. Penilaian akhli
2. Estimasi analog
3. Estimasi parametrik
4. Estimasi bottom up
5. Estimasi tiga titik
6. Analisa cadangan
7. Kualitas biaya
8. Estimasi manajemen proyek
9. Analisa penawaran penjual

C.

Keluaran
1. Estimasi biaya aktivitas
2. Estimasi dasar
3. Update dokumen proyek

Anggaran
A.

Masukan
1. Estimasi biaya aktivitas
2. Estimasi dasar
3. Lingkup dasar
4. Jadwal proyek
5. Kalendar sumberdaya
6. Kontrak
7. Proses aset organisasi

B.

Perangkat dan teknik


1. Biaya agregasi
2. Analisa sumberdaya
3. Penilaian akhli
4. Hubungan historis
5. Rekonsiliasi batas pendanaan

C.

Keluaran
1. Kinerja biaya dasar
2. Kebutuhan dana proyek
3. Update dokumen proyek

Pengendalian Biaya
A.

Masukan
1. Rencana manajemen proyek
2. Kebutuhan dana proyek
3. Informasi kinerja kegiatan
4. Proses aset organisasi

B.

Perangkat dan teknik


1. Manajemen nilai yang diperoleh
2. Peramalan
3. Melengkapi indek kinerja
4. Penilaian kinerja
5. Analisa varian (perbedaan)
6. Manajemen proyek

C.

Keluaran
1. Pengukuran kinerja
2. Peramalan anggaran
3. Update proses aset organisasi
4. Perubahan yang diperlukan
5. Update rencana manajemen proyek
6. Update dokumen proyek

LaporanKeuangan
Laporan Laba Rugi
No.

Item

Revenue

Royalty

Expenses
- variable cost
- fix cost
- depreciation

Earning before tax

Tax

Earning after tax

Total

Aliran Kas
No.

Item

Unit price

Year
0

Investment activity
- investment
- salvage

Revenue

Royalty

Expenses
- variable cost
- fix cost
- depreciation

Earning before tax

Tax

Earning after tax

depreciation

Net cash flow

10

Cum. cash flow

Total
2

Neraca

Nilai Uang dan Waktu


Basics
Year-End Convention
Unless otherwise indicated, it is assumed that all receipts and
disbursements take place at the end of the year in which they
occur.
Interest
Money paid for the use of borrowed money.
Simple Interest
Nominal Rate of Interest
Compounded Interest
the percentage is not paid at the end of the period, then, this
amount is added to the original amount (principal) to calculate
the interest for the second term.

Why Interest exist?


Taking the lenders view of point:

Risk
: Possibility that the borrower will be unable to pay
Inflation
: Money repaid in the future will value less
Transaction Cost : Expenses incurred in preparing the loan agreement
Opportunity Cost : Committing limited funds, a lender will be unable to
take advantage of other opportunities.
Postponement of Use: Lending money, postpones the ability of the
lender to use or purchase goods.

From the borrowers perspective .


Interest represents a cost !

Interest Formulas
r = Nominal rate of interest
i = Effective interest rate per period

When the compounding frequency is annually: r = i

When compounding is performed more than once per


year, the effective rate (true annual rate) always exceeds
the nominal annual rate: i > r
A = Series of n equal payments made at the end of
each period
i = Effective interest rate per period

Compounding Frequency

It is also important to be able to calculate the effective


interest rate (i) for the actual interest periods to be used.

The effective interest rate can be obtained by dividing the


nominal interest rate by the number of interest payments per
year (m)
i = (r/m)
where: i = effective interest rate for the period
r = nominal annual interest rate
r
i
i
i
i
i
i
!----------!----------!----------!----------!----------!----------!
0 1 2 3 4 5 6

Compounding Frequency

Compounding can be performed at any interval (common:


quarterly, monthly, daily)
When this occurs, there is a difference between nominal
and effective annual interest rates
This is determined by:
i = (1 + r/x)x 1
where: i = effective annual interest rate
r = nominal annual interest rate
x = number of compounding periods per year
r
i
i
i
i
i
i
!----------!----------!----------!----------!----------!----------!
0 1 2 3 4 5 6

Solving Interest Problems


Step #1: Abstracting the Problem
Interest problems based upon 5 variables:
P, F, A, i, and n
Determine which are given (normally three) and what needs to
be solved

Solving Interest Problems


Step #2: Draw a Cash Flow Diagram

Receipts

A2

Cash Flow
+

A1

A3

A4

A5

A6

Time

Disbursements

Present Value
If you want to find the amount needed at present in order
to accrue a certain amount in the future, we just solve
Equation 1 for P and get:
P = F / (1+r)n

(2)

Notation: (P/F,i,n) means Find P, given F, at a rate i for n


periods
This notation is often shortened to P/F

Future Value
The compound interest relationship may generally be
expressed as:
F = P (1+r)n (1)
Where F = Future sum of money
P = Present sum of money
r = Nominal rate of interest
n = number of interest periods
Notation:
(F/P,i,n) means Find F, given P, at a rate i for
n
periods
This notation is often shortened to F/P

Annuities
Uniform series are known as the equal annual payments
made to an interest bearing account for a specified
number of periods to obtain a future amount.

Cash Flow
+

A1

A2

A3

A4

A5

A6

Time

Annuities Formula

The future value (F) of a series of payments (A) made during


(n) periods to an account that yields (i) interest:
F = A [ (1+i)n 1 ] (5)
i

Where F = Future sum of money


n = number of interest periods
A = Series of n equal payments made at the end of each
period
i = Effective interest rate per period

Derivation of this formula can be found in most engineering


economics texts & study guides

Notation: (F/A,i,n) or if using tables F = A (F/A,i,n)

Sinking Fund

We can also get the corresponding value of an annuity


(A) during (n) periods to an account that yields (i)
interest to be able to get the future value (F) :

Solving for A:

A = i F / [ (1+i)n 1 ]

Notation : A = F (A/F,i,n)

(6)

Present Worth of an Uniform Series

Sometimes it is required to estimate the present value


(P) of a series of equal payments (A) during (n) periods
considering an interest rate (i)

From Eq. 1 and 5


P = A [ (1+i)n 1 ]
i (1+i)n

(7)

Notation: P = A (P/A,i,n)

Uniform Series Capital Recovery

This is the corresponding scenario where it is required to


estimate the value of a series of equal payments (A) that
will be received in the future during (n) periods
considering an interest rate (i) and are equivalent to the
present value of an investment (P)
Solving Eq. 7 for A
A = i P (1+i)n (8)
(1+i)n -1
Notation: A = P (A/P,i,n)

Gradient Series

Thus far, most of the course discussion has focused on uniformseries problems

A great many investment problems in the real world involve the


analysis of unequal cash flow series and can not be solved with
the annuity formulas previously introduced

As such, independent and variable cash flows can only be


analyzed through the repetitive application of single payment
equations

Mathematical solutions have been developed, however, for two


special types of unequal cash flows:
Uniform Gradient Series
Geometric Gradient Series

Uniform Gradient Series

A Uniform Gradient Series (G) exists when cash flows either


increase or decrease by a fixed amount in successive periods.

In such cases, the annual cash flow consists of two components:


(1) a constant amount (A1) equal to the cash flow in the first
period
(2) a variable amount (A2) equal to (n-1)G
As such:

AT = (A1) + (A2)
A2 = G [(1/i) (n/i)(A/F,i,n)]

where: [(1/i) (n/i)(A/F,i,n)] is called the uniform gradient factor


and is written as (A/G,i,n)
Therefore: AT = (A1) + G(A/G,i,n))

Uniform Gradient Series


Example: An engineer is planning for a 15 year retirement. In order
to supplement his pension and offset the anticipated effects of
inflation and increased taxes, he intends to withdraw $5,000 at
the end of the first year, and to increase the withdrawal by $1,000
at the end of each successive year. How much money must the
engineer have in this account at the start of his retirement, if the
money earns 6% per year, compounded annually?
Want
to Find:
$19000
A1, G, i, and n

$18000

$8000
$7000
$6000
$5000
T=0
1

14

15

Given:

Uniform Gradient Series


Example:
AT = (A1) + G(A/G,i,n)
A2 = G(A/G,i,n) = $1000 (A/G,6%,15) = $1000 (5.926) =
$5926
AT = $5000 + $5926 = $10,926
P = AT (P/A,i,n) = $10,926 (P/A,6%,15) = $10,926
(9.7123) = $106,120

Geometric Gradient Series

Since receipts and expenditures rarely increase or decrease every


period by a fixed amount, Uniform Gradient Series (G) problems
have limited applicability

With Geometric Gradients, the increase or decrease in cash flows


between periods is not a constant amount but a constant
percentage of the cash flow in the preceding period.

Like Uniform Gradients, Geometric Gradients limited applicability


but are sometimes used to account for inflationary cost increases
AK = A (1 + j)K-1
Where:j equals the percent change in the cash flow between
periods
A is the cash flow in the initial period
AK is the cash flow in any subsequent period

Cash flow analysis


As we have addressed the fundamental concepts associated
with engineering economics and cash flows, is now time to
convert these estimates into measures of desirability as a tool
for investment decisions.
We will use the following criteria:

Present & Future Value


Annual Value
Benefit / Cost Ratio
Payback period
Internal Rate of Return
Variations of IRR

Present Value
The Present value or present worth method of evaluating
projects is a widely used technique. The Present Value
represents an amount of money at time zero representing
the discounted cash flows for the project.

PV
T=0

+/- Cash Flows

Net Present Value (NPV)


The Net Present Value of an investment it is simply the difference
between cash outflows and cash inflows on a present value basis.
In this context, the discount rate equals the minimum rate of
return for the investment
Where:
NPV = Present Value (Cash Benefits) - Present Value (Cash
Costs)

Future Value
The future value method evaluates a project based upon the
basis of how much money will be accumulated at some future
point in time. This is just the reverse of the present value
concept.

FV
T=0

+/- Cash Flows

Annual Value

Sometimes it is more convenient to evaluate a project in


terms of its annual value or cost. For example, it may be
easier to evaluate specific components of an investment or
individual pieces of equipment based upon their annual
costs as the data may be more readily available for
analysis.

Benefit/Cost Ratio

The benefit/cost ratio is also called the profitability index


and is defined as the ratio of the sum of the present value
of future benefits to the sum of the present value of the
future capital expenditures and costs.

B/C Ratio Example

Present value cash inflows


Project A
Project B
$500,000
$100,000

Present value cash outflows (costs)


$300,000
$ 50,000

Net Present Value


$200,000

$ 50,000

Benefit/Cost Ratio
1.67

2.0

Payback Period
This is one of the most common evaluation criteria used by
engineering and resource companies.
The Payback Period is simply the number of years required for
the cash income from a project to return the initial cash
investment in the project.
The investment decision criteria for this technique suggests
that if the calculated payback is less than some maximum
value acceptable to the company, the proposal is accepted.
The following example illustrates five investment proposals
having identical capital investment requirements but differing
expected annual cash flows and lives.

Internal Rate of Return

Internal Rate of Return refers to the interest rate that the


investor will receive on the investment principal

IRR is defined as that interest rate (r) which equates the sum
of the present value of cash inflows with the sum of the present
value of cash outflows for a project. This is the same as defining
the IRR as that rate which satisfies each of the following
expressions:
PV cash inflows - PV cash outflows = 0
NPV = 0 for r
PV cash inflows = PV cash outflows

In general, the calculation procedure involves a trial-and-error


solution unless the annual cash flows subsequent to the investment
take the form of an annuity. The following examples illustrate the
calculation procedures for determining the internal rate of return.

IRR Analysis
The acceptance or rejection of a project based on the IRR criterion is
made by comparing the calculated rate with the required rate of return,
or cutoff rate established by the firm. If the IRR exceeds the required
rate the project should be accepted; if not, it should be rejected.

If the required rate of return is the return investors expect the


organization to earn on new projects, then accepting a project with an
IRR greater than the required rate should result in an increase of the
firms value.

NPV and IRR

What is in the Discount Rate?


According to practice, the discount rate has to cover the
following items:
Opportunity Costs
Transaction Costs
Compensate for Risk
Cover anticipated Inflation
Some of these items can be accounted for in other financial
analysis methods and do not have to be address in the
discount rate itself.

Financial Cost of Capital


The financial cost of capital is based on the assumption that
financing is unlimited and the company can always pay off
loans or buy stock back, so the financial cost of capital rate
of return is the average cost of debt after tax (remember
interest is tax deductible) and the cost of equity (what the
share holders desired return is using the capital asset
pricing model CAPM)

Marginal Weighted Average Cost of


Capital
The cost of capital is the minimum rate of return that a firm
needs to earn on new investments to maintain the existing
value of its shares of common stock. To determine the cost
of capital a weighted average of all sources of capital must
be evaluated. The weighted average should include a mix
of debt and equity on an after tax basis.

Hurdle Rate
The hurdle rate is a common term used by companies as an
expression of their rate of return used for financial analysis.
This is generally a higher number than the FCC (finance
cost of capital) rate as they add an imposed economic
hurdle for the project to overcome. This helps companies
express that a project that just achieves a FCC rate of
return does not add real value to the company.

Opportunity Cost of Capital


The opportunity cost of capital is the most common method
of establishing the investors minimum rate of return.
This is based upon the expected returns that the company
will generate in the next 1 to 15 years. It is the average
return that investors expect to make over the next few
years expressed as a compound interest.

Mutual Exclusive
# umur sama
# umur tidak sama
# umur sama
Fx
Ax Ax Ax
X = !-------------!-------------!------------!
0
1
2
3
Px
NPV(x)
IRR(x)

= ..?..
= ..?..

Fy
Ay Ay Ay
Y = !-------------!-------------!------------!
0
1
2
3
Py
NPV(y)
IRR(y)

= ..?..
= ..?..

Mutual Exclusive
umur tidak sama
Fx
Ax Ax Ax Ax Ax
X = !--------------!------------!-------------!-------------!------------!
0
1
2
3
4
5
Px
Fy
Ay Ay Ay
Y = !--------------!------------!-------------!
0
1
2
3
Py
- Fy Fx
Ax-Ay
Ax-Ay
Ax-Ay
Ax Ax
X Y = !--------------!------------!-------------!-------------!------------!
0
1
2
3
4
5
Px-Py
NPV(x) = ..?..NPV(y) = ..?..NPV(x-y) = ..?..
IRR(x) = ..?..IRR(y) = ..?..IRR(x-y) = ..?..

Mutual Exclusive
umur tidak sama
Fx
Ax Ax Ax Ax Ax
X = !--------------!---------------!---------------!---------------!--------------!
0
1
2
3
4
5
Px
Fy
Ay Ay Ay
Y = !--------------!---------------!---------------!
0
1
2
3
Py
Fy + Fx(mod)
Ax Ax Ax X (mod) =
!--------------!---------------!---------------!--------------!---------------!
0
1
2
3
4
5
Px
NPV(x) = ..?..NPV(y) = ..?..NPV(mod) = ..?..
IRR(x) = ..?..
IRR(y) = ..?..
IRR(mod) = ..?..

Mutual Exclusive
umur tidak sama
Fx
Ax Ax Ax Ax Ax
X = !--------------!---------------!---------------!---------------!--------------!
0 1 2 3 4 5
Px
Fy
AyAyAy
Y = !--------------!---------------!---------------!
0 1 2 3
Py
Fy F(mod)
AyAyAyA(mod)A(mod)
Y(mod) = !--------------!---------------!---------------!--------------!---------------!
0 1 2 3 4 5
Py
NPV(x) = ..?.. NPV(y) = ..?.. NPV(mod) = ..?..
IRR(x) = ..?.. IRR(y) = ..?.. IRR(mod) = ..?..

Mutual Exclusive
umur tidak sama
Fx
AxAxAx
X =!--------------!---------------!---------------!
0123
Px
Fy
AyAy
Y = !--------------!---------------!
012
Py
Fx Fx
Ax Ax Ax Ax Ax Ax
X(mod) =!----------------------!---------------------!--------------------!--------------------!--------------------!---------------------!
0123456
Px Px
Fy Fy Fy
Ay Ay Ay Ay Ay Ay
Y(mod) =!----------------------!---------------------!--------------------!--------------------!--------------------!---------------------!
0123456
Py Py Py

NPV(x) = ..?..NPV(y) = ..?..NPV(Xmod) = ..?.. NPV(Ymod) = ..?..


IRR(x) = ..?.. IRR(y) = ..?.. IRR(Xmod) = ..?.. IRR(Xmod) = ..?..

Aplikasi
Lease versus Borrow and Purchase
The following example shows how to use these steps. A trucking
contractor has two choices:
(1)buy a new tri-axle dump truck or
(2)lease it for three years. The dump truck has a useful life of
five years and costs $100,000. The Helpful Bank is willing to
loan the contractor $88,000 at 7percent interest and requires a
down payment of $12,000 and annual payments of $20,891,
which are due at the end of each of the next five years.

16-59

Analisa Resiko
Sensitivity Analysis
Variabel

Range
Pesimis

perkiraan

Optimis

Investasi

Penjualan

Biaya
variabel

Break Even Point


NPV = (- Po) + PW ( N (sales/unit variabel cost/unit) (fix cost + depresiasi))
Po = PW(i,n) (N (sales/unit variabel cost/unit) (fix cost + depresiasi))
N

= jumlah unit

Decision Trees
Success
Test (Invest
$200,000)

Pursue project
NPV=$2million

Failure
Stop project
NPV=0
Dont test

NPV=0

Real Options
1.
2.
3.
4.

Option to expand
Option to abandon
Timing option
Flexible production facilities

Thank You

Reference
Hugh Miller
Colorado School of Mines
Mining Engineering
Department
Fall 2007