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BAB 13

KEPUTUSAN PENANAMAN MODAL

PERTANYAAN UNTUK MENULIS DAN PEMBAHASAN

1. proyek independen adalah sedemikian rupa sehingga 11. Jika NPV> 0, maka investasi tersebut accepta- ble. Jika NPV
ceptance ac- satu tidak menghalangi ceptance ac- lain. <0, maka investasi harus ditolak.
Dengan proyek yang saling eksklusif, penerimaan satu
menghalangi penerimaan lain.
12. Tidak setuju. Hanya jika dana yang diterima masing-masing
periode investasi yang diinvestasikan kembali untuk mendapatkan
2. Waktu dan kuantitas arus kas de- IRR akan IRR menjadi tingkat aktual pengembalian.
Termine nilai sekarang dari sebuah proyek. Nilai sekarang
adalah penting untuk menilai wheth- er proyek diterima atau
tidak. 13. manajer bantuan Postaudits menentukan apakah re-
sumber yang digunakan dengan bijaksana. sumber daya tambahan
3. Dengan mengabaikan nilai waktu dari uang, baik
atau tindakan korektif mungkin diperlukan. Postaudits juga melayani
proyek dapat ditolak dan proyek-proyek yang buruk diterima.
untuk mendorong manajer untuk membuat keputusan investasi
modal yang baik. Mereka juga memberikan umpan balik yang dapat
4. Payback period adalah waktu yang diperlukan untuk membantu meningkatkan keputusan masa depan.
memulihkan investasi awal. Payback = $ 80.000 / $ 30.000 =
2,67 tahun
14. sinyal NPV yang memaksimalkan investasi
5. (A) ukuran risiko. Kira-kira, proyek dengan paybacks pendek nilai perusahaan; IRR dapat memberikan sinyal- sinyal
kurang berisiko. (B) lescence Obso-. Jika risiko keusangan menyesatkan. IRR mungkin populer karena pro vides sinyal
tinggi, perusahaan akan ingin memulihkan dana cepat. (C) yang benar sebagian besar waktu dan manajer terbiasa
Self-bunga. Manajer ingin punggung berbayar cepat bekerja dengan tingkat pengembalian.
sehingga kinerja jangka pendek ures itu dapat mengukur
dipengaruhi secara positif, meningkatkan peluang untuk
bonus dan promosi. Juga, metode ini mudah untuk 15. Seringkali, investasi harus dilakukan dalam aset
menghitung. yang tidak langsung menghasilkan pendapatan. Dalam hal ini,
memilih aset dengan biaya setidaknya (yang diukur dengan
NPV) masuk akal.
6. Tingkat akuntansi pengembalian adalah rata-rata
Pendapatan dibagi dengan asli atau rata-rata jubah in. ARR = 16. Analisis NPV adalah hanya sebagai baik sebagai accura- yang
$ 100.000 / $ 300.000 = cy dari arus kas. Jika proyeksi arus kas tidak akurat,
33,33% keputusan vestasi in maka tidak benar dapat dilakukan.
7. Setuju. Pada dasarnya, nilai sekarang bersih adalah
mengukur kembalinya lebih dari vestimentum-dan biaya 17. Kualitas dan keandalan dari arus kas
modal.
proyeksi langsung berhubungan dengan sumptions sebagai-
8. NPV mengukur peningkatan nilai perusahaan dan metode yang digunakan untuk peramalan. Jika asumsi
dari proyek. dan metode yang rusak, maka perkiraan akan salah, dan
keputusan yang salah dapat dilakukan.
9. Biaya modal adalah biaya investasi
dana dan biasanya dilihat sebagai rata-rata tertimbang dari
biaya dana dari semua sumber. Harus melayani sebagai 18. Implikasi pajak utama yang harus
tingkat diskonto untuk menghitung nilai sekarang bersih atau dipertimbangkan dalam Tahun 0 adalah keuntungan dan kerugian atas
patokan untuk analisis IRR. penjualan aset yang ada.

19. Metode MACRS menyediakan lebih shiel-


10. Untuk NPV, tingkat yang diperlukan pengembalian adalah Efek ding di tahun lebih awal dari metode garis lurus tidak.
Nilai diskon. Untuk IRR, tingkat yang diperlukan Akibatnya, nilai sekarang dari manfaat perisai lebih besar
pengembalian adalah patokan terhadap yang IRR untuk metode MACRS.
dibandingkan untuk menentukan apakah suatu investasi
dapat diterima atau tidak.

425
20. Konvensi setengah tahun mengasumsikan bahwa untuk mempertahankan atau meningkatkan pangsa pasar adalah
aset dalam pelayanan hanya setengah tahun pada tahun contoh manfaat tak berwujud. Pengurangan tenaga kerja dukungan di
akuisisi. Dengan demikian, hanya setengah dari depresiasi berbagai bidang seperti penjadwalan dan toko manfaat tidak
tahun pertama dapat diklaim, tanpa memandang dari tanggal langsung.
dimana penggunaan aset benar-benar dimulai. Hal ini
22. analisis sensitivitas perubahan-asumsi yang
meningkatkan panjang penyusutan waktu diakui oleh satu
tions di mana analisi sis investasi modal didasarkan. Bahkan
tahun selama umur kelas ditunjukkan.
dengan asumsi suara, masih ada unsur ketidakpastian. Tidak
ada yang bisa memprediksi masa depan dengan pasti.
21. manfaat tak berwujud dan tidak langsung adalah penting jauh Dengan mengubah asumsi, manajer dapat memperoleh
lebih besar di lingkungan facturing manu- canggih. kualitas wawasan tentang dampak dari tidak pasti peristiwa
yang lebih besar, lebih kehandalan, peningkatan pengiriman, mendatang fu-.
dan kemampuan

426
LATIHAN

13-1

1. a 12. c
2. e 13. a
3. c 14. e
4. a 15. c
5. d 16. a
6. e 17. e
7. c 18. b
8. b 19. e
9. d 20. c
10. e
11. b

13-2

1. Payback period = $ 200.000 / $ 60.000 = 3.33 tahun

2. Payback Periode: $ 125.000

1,0 tahun
175.000 1,0 tahun
200.000 0,8 tahun
$ 500.000 2.8 tahun

3. Investasi = arus kas tahunan × payback period


= $ 120.000 × 3 = $
360.000

4. arus kas = Investasi / payback period Tahunan


= $ 250.000 / 2,5 = $ 100.000
per tahun

427
13-3

1.

investasi awal (rata-rata penyusutan = 300.000): Tingkat Akuntansi pengembalian = laba

akuntansi rata-rata / Investasi


= ($ 2.500.000 - $ 2.000.000 - $ 300.000) / $ 1.500.000 = 13,3%

tingkat 2. Akuntansi pengembalian (ARR):

Project A: ARR = ($ 12.800 - $ 4.000) / $ 20.000 = 44% proyek B: ARR

= ($ 7600 - $ 2000) / $ 20.000 = 18% proyek A harus dipilih.

3. ARR = rata-rata Laba Bersih / Investasi rata-rata


0,25 = $ 100.000 / Rata-rata Investasi rata
Investasi = $ 100.000 / 0,25
= $ 400.000

Dengan demikian, Investasi = 2 × $ 400.000

= $ 800.000

4. ARR = rata-rata Laba Bersih / Investasi


0,50 = rata-rata Laba Bersih / $ 200.000 rata Laba
Bersih = 0,50 × $ 200.000
= $ 100.000

13-4

1. NPV = P - I
= (5.650 × $ 240.000) - $ 1.360.000 = $ (4000)

Sistem ini tidak harus dibeli.

2. NPV = P - I
= (4,623 × $ 9.000) - $ 30.000 = $ 11.607 Ya, ia

harus membuat investasi.

428
3. NPV = P - II = P - NPV

I = 4,355 × $ 10.000 - $ 3550 = $


40.000

13-5

1. P = CF (df) = I untuk IRR, dengan demikian,

df = Investasi / arus kas Tahunan


= $ 1.563.500 / $ 500.000 =
3,127

Selama lima tahun dan faktor diskon dari 3,127, IRR 18%.

2. P = CF (df) = I untuk IRR, dengan demikian, df = $


521.600 / $ 100.000 = 5,216
Selama sepuluh tahun, dan faktor diskon dari 5,216, IRR = 14% Ya,

investasi harus dilakukan.

3. CF (df) = I untuk IRR, dengan demikian,

CF = I / df = $ 2.400.000 / 4,001 = $ 599.850.

13-6

Peralatan 1. Larson Analisis Darah:

Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (200.000) 1.000 $ (200.000)
1 120.000 0,893 107.160
2 100.000 0,797 79.700
3 80.000 0,712 56.960
4 40.000 0,636 25.440
5 20.000 0,567 11.340
NPV $ 80.600

429
13-6 Disimpulkan

Analisis Lawton Darah Peralatan:

Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (200.000) 1.000 $ (200.000)
1 20.000 0,893 17.860
2 20.000 0,797 15.940
3 120.000 0,712 85.440
4 160.000 0,636 101.760
5 180.000 0,567 102.060
NPV $ 123.060

2. CF (df) - I = NPV
CF (3,605) - $ 200.000 = $ 123.060 (3,605)
CF = $ 323.060
CF = $ 323.060 / 3,605 CF = $
89.614 per tahun

Dengan demikian, arus kas tahunan harus melebihi $ 89.614 untuk dipilih.

13-7

1. Payback period = investasi Asli / cash inflow Tahunan


= $ 800.000 / ($ 1.300.000 - $ 1.000.000) = $
800.000 / $ 300.000 = 2,67 tahun

2. a. investasi awal (rata-rata penyusutan = 160.000): Tingkat Akuntansi pengembalian = laba

akuntansi rata-rata / Investasi


= ($ 300.000 - $ 160.000) / $ 800.000 = 17,5%

430
13-7 Disimpulkan

3. Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (800.000) 1.000 $ (800.000)
1 300.000 0,909 272.700
2 300.000 0,826 247.800
3 300.000 0,751 225.300
4 300.000 0,683 204.900
5 300.000 0,621 186.300
NPV $ 337.000

4. P = CF (df) = I untuk IRR, dengan demikian, df =

Investasi / arus kas Tahunan


= $ 800.000 / $ 300.000 =
2,67

Selama lima tahun dan faktor diskon sebesar 2,67, IRR adalah antara 24 dan 26%.

13-8

1. Payback Periode: Project

A:

$ 3.000 1.00 tahun


4.000 1.00 tahun
3.000 0.60 tahun
$ 10.000 2,60 tahun

Proyek B:

$ 3.000 1.00 tahun


4.000 1.00 tahun
3.000 0,50 tahun
$ 10.000 2,50 tahun

Kedua proyek memiliki tentang payback sama sehingga yang paling menguntungkan harus
dipilih (Project A).

431
13-8 Disimpulkan

tingkat 2. Akuntansi pengembalian (ARR):

Project A: ARR = ($ 6.400 - $ 2.000) / $ 10.000 = 44% proyek B:

ARR = ($ 3800 - $ 2000) / $ 10.000 = 18% proyek A harus dipilih.

3. P = 9,818 × $ 24.000 = $ 235.632 Wilma harus

mengambil anuitas.

4. NPV = P - I
= (4,623 × $ 6.000) - $ 20.000 = $ 7738 Ya, ia

harus membuat investasi.

5. df = $ 130.400 / $ 25.000 = 5,216 IRR = 14%

Ya, investasi harus dilakukan.

13-9

1. a. Kembalinya investasi asli $ 200.000


b. Biaya modal ($ 200.000 × 10%) 20.000
c. Laba yang diperoleh dari investasi ($
231.000 - $ 220.000) 11.000

Nilai kini keuntungan: P = F × Faktor

diskon
= $ 11.000 × 0,909 = $
9.999

2. Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (200.000) 1.000 $ (200.000)
1 231.000 0,909 209.979
net present value $ 9979

net present value memberikan nilai sekarang dari keuntungan masa depan (yang ence berbeda- sedikit adalah karena
pembulatan kesalahan dalam discount factor).

432
13-10

1. Biaya Obligasi = $ 6.000 / $ 120.000 = 0,05 Biaya modal

= 0,05 (0,6) + 0,175 (0,4)


= 0,03 + 0,07 =
0,10

2. Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (200.000) 1.000 $ (200.000)
1 100.000 0,909 90.900
2 100.000 0,826 82.600
3 100.000 0,751 75.100
net present value $ 48.600

Hal ini tidak perlu untuk mengurangi pembayaran bunga dan pembayaran dividen karena ini
berhubungan dengan biaya modal dan termasuk dalam biaya modal perusahaan dari 10 persen.

433
13-11

1. P = I = df × CF
2,914 * × CF = $ 120.000
CF = $ 41.181

* Dari pameran 13B-2, 14 persen selama empat tahun

2. Untuk IRR (diskon faktor dari pameran 13B-2): I = df × CF = 2,402 ×


CF (1) Untuk NPV: NPV = df × CF - Saya

= 2,577 × CF - I (2)

Mengganti persamaan (1) ke dalam persamaan (2):

NPV = (2,577 × CF) - (2,402 × CF) $ 1.750 =


0,175 × CF
CF = $ 1.750 / 0,175
= $ 10.000 dalam tabungan setiap tahun Mengganti

CF = $ 10.000 ke dalam persamaan (1): I = 2,402 × $ 10.000

= $ 24.020 investasi awal

3. Untuk IRR: I = df × CF

$ 60.096 = df × $ 12.000 df = $ 60.096 /


$ 12.000
= 5,008

Dari pameran 13B-2, kolom 18 persen, tahun sesuai dengan df = 5,008 adalah 14. Dengan demikian, mesin bubut
harus bertahan 14 tahun.

434
13-11 Disimpulkan

4. X = Arus kas pada Tahun 4

Investasi = 2X

Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (2X) 1.000 $ (2X)
1 10.000 0,909 9090
2 12.000 0,826 9912
3 15.000 0,751 11.265
4 X 0,683 0.683X
NPV $ 3927

- 2X + $ 9.090 + $ 9.912 + $ 11.265 + 0.683X = $ 3927


- 1.317X + $ 30.267 = $ 3927
- 1.317X = ($ 26.340) X = $
20.000

arus kas di Tahun 4 = X = $ 20.000 Biaya


proyek = 2X = $ 40.000

435
13-12

1. NPV:

Proyek I

Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (100.000) 1.000 $ (100.000)
1 - - -
2 134.560 0,826 111.147
NPV $ 11.147

Proyek II

Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (100.000) 1.000 $ (100.000)
1 63.857 0,909 58.046
2 63.857 0,826 52.746
NPV $ 10.792

Proyek saya harus dipilih menggunakan NPV. IRR:

proyek saya

I = df × CF $ 100.000 = $
134.560 / (1 + i) 2

(1 + i) 2 = $ 134.560 / $ 100.000 = 1,3456 1


+ I = 1,16 IRR = 16%

proyek II

df = I / CF
= $ 100.000 / $ 63.857 =
1,566

Dari pameran 13B-2, IRR = 18 persen. Proyek II


harus dipilih menggunakan IRR.

2. NPV adalah ukuran profitabilitas mutlak dan mengungkapkan berapa banyak nilai perusahaan akan berubah
untuk setiap proyek; IRR memberikan ukuran bility profita- relatif. Dengan demikian, sejak NPV
mengungkapkan total perubahan kekayaan disebabkan setiap proyek, lebih disukai untuk ukuran IRR.

436
13-13 Project

A:

biaya CF = NI + mempengaruhi kas


= $ 54.000 + $ 45.000 = $ 99.000 Proyek B: CF = - [(1 - t) × biaya tunai] + [t

× Beban non-kas]

= - (0,6 × $ 90.000) + (0,4 × $ 15.000) = - $ 48.000

13-14

1. Tahun penyusutan TNC df Nilai saat ini


1 $ 2.000 $ 800 0,893 $ 714
2 4.000 1.600 0,797 1.275
3 4.000 1.600 0,712 1.139
4 2.000 800 0,636 509
NPV $ 3637

2. Tahun penyusutan TNC df Nilai saat ini


1 $ 4.000 $ 1.600 0,893 $ 1.429
2 5334 2134 0,797 1.701
3 1777 711 0,712 506
4 889 356 0,636 226
NPV $ 3.862

3. MACRS meningkatkan nilai sekarang dari perisai pajak dengan meningkatkan jumlah penyusutan pada
tahun-tahun sebelumnya.

437
13-15

Pembelian (mengasumsikan depresiasi MACRS):

Tahun (1 - t) C TNC CF df P
0 - - $ (30.000) 1.000 $ (30.000)
1 $ (3000) Sebuah $ 2.400 b (600) 0,909 (545)
2 (3000) 3.840 c 840 0,826 694
3 (3000) 2304 d (696) 0,751 (523)
4 (3000) 1382 e (1618) 0,683 (1105)
5 (3000) 1382 e (1618) 0,621 (1005)
NPV $ (32.484 )
$a 5.000 × 0,6
b$ 30.000 × 0,2 × 0,4
c$ 30.000 × 0,32 × 0,4
d$ 30.000 × 0,192 × 0,4
e$ 30.000 × 0,1152 × 0,4 Lease:

Tahun (1 - t) C CF df P
0 $ (1000) 1.000 $ (1000)
1-5 $ (7500) * (7500) 3,791 (28.433)
5 1.000 0,621 621
NPV $ (28.812 )

* $ 12.500 × 0,6

mobil harus disewa karena sewa memiliki biaya yang lebih rendah.

438
13-16

1. Standar peralatan (Rate = 18%):

Tahun Arus kas df Nilai saat ini


0 $ (500.000) 1.000 $ (500.000)
1 300.000 0,847 254.100
2 200.000 0,718 143.600
3-10 100.000 2,928 292.800
NPV $ 190.500

peralatan CAM (Rate = 18%):

Tahun Arus kas df Nilai saat ini


0 $ (2.000.000) 1.000 $ (2.000.000)
1 100.000 0,847 84.700
2 200.000 0,718 143.600
3 300.000 0,609 182.700
4-6 400.000 1,323 529.200
7 500.000 0,314 157.000
8-10 1.000.000 0,682 682.000
NPV $ (220.800 )

2. Peralatan standar (Rate = 10%):


Tahun Arus kas df Nilai saat ini
0 $ (500.000) 1.000 $ (500.000)
1 300.000 0,909 272.700
2 200.000 0,826 165.200
3-10 100.000 4,409 440.900
NPV $ 378.800

peralatan CAM (Rate = 10%):

Tahun Arus kas df Nilai saat ini


0 $ (2.000.000) 1.000 $ (2.000.000)
1 100.000 0,909 90.900
2 200.000 0,826 165.200
3 300.000 0,751 225.300
4-6 400.000 1,868 747.200
7 500.000 0,513 256.500
8-10 1.000.000 1,277 1.277.000
NPV $ 762.100

439
13-16 Disimpulkan

3. Perhatikan bagaimana arus kas dengan menggunakan tingkat 10 persen pada Tahun 8-10 yang berbobot dibandingkan
dengan tingkat 18 persen. Perbedaan nilai sekarang adalah signifikan. Menggunakan tingkat diskonto yang
berlebihan bekerja melawan proyek-proyek yang menjanjikan arus kas yang besar kemudian dalam hidup mereka.
The tindakan terbaik bagi perusahaan adalah dengan menggunakan biaya modal sebagai tingkat diskonto. Jika tidak,
beberapa investasi yang sangat menarik dan penting bisa diabaikan.

13-17

1. Standar peralatan (Rate = 14%):

Tahun Arus kas df Nilai saat ini


0 $ (500.000) 1.000 $ (500.000)
1 300.000 0,877 263.100
2 200.000 0,769 153.800
3-10 100.000 3,571 357.100
NPV $ 274.000

peralatan CAM (Rate = 14%):

Tahun Arus kas df Nilai saat ini


0 $ (2.000.000) 1.000 $ (2.000.000)
1 100.000 0,877 87.700
2 200.000 0,769 153.800
3 300.000 0,675 202.500
4-6 400.000 1,567 626.800
7 500.000 0,400 200.000
8-10 1.000.000 0.929 929.000
NPV $ 199.800

2. Peralatan standar (Rate = 14%):

Tahun Arus kas df Nilai saat ini


0 $ (500.000) 1.000 $ (500.000)
1 300.000 0,877 263.100
2 200.000 0,769 153.800
3-10 50.000 3,571 178.550
NPV $ 95.450

Keputusan membalikkan-sistem CAM sekarang lebih. Pembalikan ini disebabkan manfaat intangible
mempertahankan pangsa pasar. Untuk tetap kompetitif, manajer harus membuat keputusan yang baik, dan
latihan ini menekankan pada ukuran bagaimana manfaat tak berwujud dapat mempengaruhi keputusan.

440
MASALAH

13-18

1. Tingkat akuntansi pengembalian .

• Kemuliaan: Metode ARR relatif mudah digunakan dan mudah dimengerti. Ini mempertimbangkan
profitabilitas proyek yang sedang dipertimbangkan.

• Keterbatasan: Ini mengabaikan arus kas dan nilai waktu dari uang.

internal rate of return.

• Kemuliaan: Ini mempertimbangkan nilai waktu dari uang. Mengukur tingkat sejati gilirannya ulang
proyek dan produktivitas modal yang diinvestasikan. Selain itu, manajer terbiasa bekerja dengan
tingkat pengembalian.

• Keterbatasan: Hal ini dinyatakan sebagai persentase daripada jumlah dolar. Ini F- sumes bahwa arus kas
diinvestasikan kembali pada IRR proyek. Ini mungkin tidak pilih proyek yang memaksimalkan nilai
perusahaan.

Metode net present value.

• Kemuliaan: Ini mempertimbangkan nilai waktu dari uang dan ukuran investasi. Ini mengukur return
true ekonomi proyek, produktivitas modal, dan perubahan kekayaan pemegang saham.

• Keterbatasan: Tidak menghitung laju suatu proyek pengembalian, dan mengasumsikan bahwa semua arus kas
diinvestasikan kembali pada tingkat yang diperlukan pengembalian.

metode payback .

• Kemuliaan: Ini memberikan ukuran likuiditas dan risiko proyek.

• keterbatasan: Mengabaikan nilai waktu dari uang. Mengabaikan arus kas


luar payback period dan, dengan demikian, mengabaikan profitabilitas proyek.

2. Nathan Skousen dan Jake Murray mendasarkan penilaian mereka pada hasil nilai sekarang bersih dan
internal rate of perhitungan kembali. Ini keduanya dianggap langkah-langkah yang lebih baik karena
mereka termasuk arus kas, nilai waktu dari uang, dan profitabilitas proyek. Proyek B lebih baik dari
proyek A untuk kedua tindakan ini.

441
13-18 Disimpulkan

3. Setidaknya tiga pertimbangan kualitatif yang umumnya harus dipertimbangkan dalam evaluasi
penganggaran modal meliputi:

• respon lebih cepat terhadap perubahan pasar dan fleksibilitas dalam kapasitas produksi.

• Strategis fit dan jangka panjang perbaikan kompetitif dari proyek, atau dampak negatif terhadap daya
saing atau gambar jika tidak membuat investasi perusahaan.

• Risiko yang melekat dalam proyek, bisnis, atau negara untuk investasi.

13-19

1. Jadwal arus kas:

Tahun Barang Arus kas

0 Peralatan $ (300.000)
Modal kerja (30.000)

1-7 Penghematan biaya $ 135.000


biaya operasi peralatan (60.000 ) 75.000

5 Pemeriksaan (30.000)

7 Nilai sisa 24.000


Pemulihan modal kerja 30.000

NPV:

Tahun Arus kas df Nilai saat ini


0 $ (330.000) 1.000 $ (330.000)
1-7 75.000 4,868 365.100
5 (30.000) 0,621 (18.630)
7 54.000 0,513 27.702
NPV $ 44.172

Ya, desain proses baru harus diterima.

442
13-20

1. Jadwal arus kas:

Tahun Barang Arus kas

0 Peralatan $ (1.100.000)
Modal kerja (50.000)
Total $ (1.150.000 )

1-5 Pendapatan $ 1.500.000


Biaya operasional (1.260.000 )
Total $ 240.000

6 Pendapatan $ 1.500.000
Biaya operasional (1.260.000)
perawatan besar (100.000)
Total $ 140.000

7-9 Pendapatan $ 1.500.000


Biaya operasional (1.260.000 )
Total $ 240.000

10 Pendapatan $ 1.500.000
Biaya operasional (1.260.000)
Menyelamatkan 40.000
Pemulihan modal kerja 50.000
Total $ 330.000

443
13-20 Disimpulkan

2. Tahun Arus kas Faktor diskon Nilai saat ini


0 $ (1.150.000) 1.000 $ (1.150.000)
1-5 240.000 3,605 865.200
6 140.000 0,507 70.980
7 240.000 0,452 108.480
8 240.000 0,404 96.960
9 240.000 0.361 86,640
10 330,000 0.322 106,260
NPV $ 184,250

The product should be produced.

13-21

1. df = Investment/Annual cash flow =


$96,660/$20,000 = 4.833

The IRR is 16 percent. The company should acquire the new system.

2. Since I = P for the IRR:

I = df × CF $96,660
= 6.145* × CF
6.145 × CF = $96,660 CF =
$15,730

* Discount factor at 10 percent (cost of capital) for ten years

3. For a life of eight years: df = I/CF

= $96,660/$20,000 =
4.833

The IRR is between 12 percent and 14 percent—greater than the 10 percent cost of capital. The
company should still acquire the new sys- tem.

444
13-21 Concluded

Minimum cash flow at 10 percent for eight years:


I = df × CF $96,660
= 5.335 × CF
5.335 × CF = $96,660 CF =
$18,118

4. Requirement 2 reveals that the estimates for cash savings can be off by as much $4,270 (over 20
percent) without affecting the viability of the new system. Requirement 3 reveals that the life of
the new system can be two years less than expected and the project is still viable. In the lat- ter
case, the cash flows can also decrease by almost ten percent as well without changing the
outcome. Thus, the sensitivity analysis should strengthen the case for buying the new system.

13–22

1. The IRR using the best estimates:

Per unit
Selling price $10
Unit variable cost 4
Unit contribution margin $ 6

Total contribution margin ($6 × 1,000,000 annual sales volume) $ 6,000,000


Less: Fixed costs 2,000,000
Annual cash flow $ 4,000,000

Discount factor = $12,000,000/$4,000,000 = 3.00

Five years and a discount factor of 3.00 implies a rate of approximately 20 percent.

2. a. If the per-unit selling price is reduced 10 percent, the adjusted IRR is 8 percent, as calculated below:

Per unit
90% of selling price $9
Unit variable cost 4
Contribution margin $5

Total contribution margin ($5 × 1,000,000 annual sales volume) $5,000,000 Less: Fixed costs
2,000,000
Annual cash flow $3,000,000

445
13–22 Concluded

Discount factor = $12,000,000/$3,000,000 = 4.00, which implies an IRR that is approximately 8


percent.

b. If the per-unit sales volume is reduced 10 percent, the adjusted IRR is 13 percent, as calculated below:

Per unit
Selling price $10
Unit variable cost 4
Contribution margin $ 6

Total contribution margin ($6 × 900,000 annual sales volume) $5,400,000


Less: Fixed costs 2,000,000
Annual cash flow $3,400,000

Discount factor = $12,000,000/$3,400,000 = 3.53, which implies an IRR that is approximately 13


percent (IRR between 12 and 14 percent).

c. If the per-unit variable cost is reduced 10 percent, the adjusted IRR is 24 percent, as calculated below:

Per unit
Selling price $10.00
Unit variable cost 3.60
Contribution margin $ 6.40

Total contribution margin


($6.40 × 1,000,000 annual sales volume) $6,400,000
Less: Fixed costs 2,000,000
Annual cash flow $4,400,000

Discount factor = $12,000,000/$4,400,000 = 2.73, which implies an IRR that is approximately 24


percent.

3. Sensitivity analysis determines the impact that certain changes in assump- tions have on IRR or NPV as
appropriate. It helps management to identify key variables and to know whether additional information is
needed. It also helps determine the volatility of the project. Sensitivity analysis is limited because it
provides no information about probability and uncertainty. The range of val- ues possible with their
probability of occurrence are important information. It also ignores the fact that assumptions are
dynamic and can interact with each other.

446
13–23

1. First, calculate the expected cash flows: Days of operation each


year: 365 – 15 = 350 Revenue per day: $200 × 2 × 150 = $60,000
Annual revenue: $60,000 × 350 = $21,000,000 Annual cash flow =
Revenues – Operating costs

= $21,000,000 – $2,500,000 =
$18,500,000

NPV = P – I
= (6.623 × $ 18,500,000) – $100,000,000 =
$122,525,500 – $100,000,000 = $22,525,500

Yes, the aircraft should be purchased.

2. Revised cash flow = (0.80 × $ 21,000,000) – $2,500,000


= $14,300,000

NPV = P – I
= (6.623 × $ 14,300,000) – $100,000,000 =
$(5,291,100)

No, the aircraft should not be purchased.

3. NPV = (6.623)CF – $100,000,000 = 0


CF = $100,000,000/6.623
= $15,098,898

Annual revenue = $15,098,898 + $2,500,000


= $17,598,898

Daily revenue = $17,598,898/350


= $50,283

Seats to be sold = $50,283/$400


= 126 seats (each way)

Seating rate needed = 126/150 = 84%

447
13–23 Concluded

4. Seats to be sold = $50,283/$440 = 115 (rounded up) Seating rate =


115/150 = 77%

This seating rate is less than the most likely and above the least likely rate of 70 percent. There is some
risk, since it is possible that the actual rate could be below 77 percent. However, the interval is 20
percent (70 percent to 90 percent), and the 77 percent rate is only 35 percent of the way into the inter-
val, suggesting a high probability of a positive NPV.

13–24

1. 1.00 year $16,800


1.00 year 24,000
1.00 year 29,400
0.13 year* 3,800
3.13 years $74,000

* $3,800/$29,400

Note: Cash flow = Increased revenue less cash expenses of $3,000

2. Accounting rate of return using original investment: Average cash flow = ($16,800 +

$24,000 + $29,400 + $29,400)/4


= $24,900

Average depreciation = ($74,000 – $6,000)/4 = $17,000 Accounting rate of

return = ($24,900 – $17,000)/$74,000


= $7,900/$74,000 =
10.7%

Accounting rate of return using average investment: Accounting rate

of return = $7,900/$40,000*
= 19.8%

* Average investment = (Investment + Salvage)/2


= ($74,000 + $6,000)/2

448
13–24 Concluded

3. Year Cash Flow Discount Factor Present Value


0 $(74,000) 1.000 $(74,000)
1 16,800 0.893 15,002
2 24,000 0.797 19,128
3 29,400 0.712 20,933
4 35,400* 0.636 22,514
NPV $ 3,577

* Includes $6,000 salvage value IRR (by

trial and error):

Using 14 percent as the first guess:


Year Cash Flow Discount Factor Present Value
0 $(74,000) 1.000 $(74,000)
1 16,800 0.877 14,734
2 24,000 0.769 18,456
3 29,400 0.675 19,845
4 35,400 0.592 20,957
NPV $ (8)

The IRR is about 14 percent.

The equipment should be purchased. (The NPV is positive and the IRR is larger than the cost of capital.)
Dr. Avard should not be concerned about the accounting rate of return in making this decision. The
payback, however, may be of some interest, particularly if cash flow is of concern to Dr. Avard.

4. Year Cash Flow Discount Factor Present Value


0 $(74,000) 1.000 $(74,000)
1 11,200 0.893 10,002
2 16,000 0.797 12,752
3 19,600 0.712 13,955
4 25,600 0.636 16,282
NPV $(21,009 )

For Years 1–4, the cash flows are 2/3 of the original cash flow increases. Year 4 also includes $6,000
salvage value.

Given the new information, Dr. Avard should not buy the equipment.

449
13–25

Keep old computer:

Year (1 – t)R a – (1 – t)C b tNC c CF df Present Value


0 — — — — — —
1 — $(60,000) $32,000 $(28,000) 0.893 $ (25,004)
2 — (60,000) 32,000 (28,000) 0.797 (22,316)
3 — (60,000) 16,000 (44,000) 0.712 (31,328)
4 — (60,000) — (60,000) 0.636 (38,160)
5 $6,000 (60,000) — (54,000) 0.567 (30,618)
NPV $(147,426 )
a( 0.60) × $ 10,000
b( 0.60) × $ 100,000
c Years 1 and 2: 0.40 × $ 80,000; Year 3: 0.40 × $ 40,000. The class life has two years remaining; thus, there are
three years of depreciation to claim, with the last year being only half. Let X = annual depreciation. Then X +
X + X/2 = $200,000 and X = $80,000.

Buy new computer:

Present
Yr. (1 – t)R a –(1 – t)C b tNC c Other d CF df Value
0 $60,000 $(450,000) $(390,000) 1.000 $(390,000)
1 (30,000) 40,000 10,000 0.893 8,930
2 (30,000) 64,000 34,000 0.797 27,098
3 (30,000) 38,400 8,400 0.712 5,981
4 (30,000) 23,040 (6,960) 0.636 (4,427)
5 $42,720 (30,000) 23,040 28,800 64,560 0.567 36,606
NPV $(315,812 )
a( 0.60) × ($ 100,000 – Book value), where book value = $500,000 – $471,200
b( 0.60) × $ 50,000
c Year 0: Tax savings from loss on sale of asset: 0.40 × $ 150,000 (The loss on the sale of the old computer is

$200,000 – $50,000.)
Years 1–5: Tax savings from MACRS depreciation: $500,000 × 0.20 × 0.40; $500,000 × 0.32 × 0.40; $500,000 × 0.192
× 0.40; $500,000 × 0.1152 × 0.40; $500,000 × 0.1152 × 0.40.

Note: The asset is disposed of at the end of the fifth year—the end of its class life—so the asset is held for its
entire class life, and the full amount of deprecia- tion can be claimed in Year 5.

d Purchase cost $500,000 less proceeds of $50,000; recovery of capital from sale of machine, end of Year 5, is
the book value of $28,800 (original cost less accu- mulated depreciation).

The old computer should be kept since it has a lower cost.

450
13–26

1. Purchase:

Year (1 – t)R a – (1 – t)C b tNC c Cash Flow


0 $(100,000)
1 $33,000 $(12,000) $5,716 26,716
2 33,000 (12,000) 9,796 30,796
3 33,000 (12,000) 6,996 27,996
4 33,000 (12,000) 4,996 25,996
5 33,000 (12,000) 3,572 24,572
6 33,000 (12,000) 3,568 24,568
7 33,000 (12,000) 3,572 24,572
8 33,000 (12,000) 1,784 22,784
9 33,000 (12,000) 21,000
10 45,000 d (12,000) 33,000
a 0.60 × $ 55,000
b 0.60 × $ 20,000
c 0.40 × 0.1429 × $ 100,000, 0.40 × 0.2449 × $ 100,000, etc.
d Includes salvage value as a gain.

Lease—with service contract:

Year (1 – t)R – (1 – t)C a tNC b Cash Flow


0 $(12,420) $(47,420) c
1 $33,000 (18,420) $1,200 15,780
2 33,000 (18,420) 1,200 15,780
3 33,000 (18,420) 1,200 15,780
4 33,000 (18,420) 1,200 15,780
5 33,000 (18,420) 1,200 15,780
6 33,000 (18,420) 1,200 15,780
7 33,000 (18,420) 1,200 15,780
8 33,000 (18,420) 1,200 15,780
9 33,000 (18,420) 1,200 15,780
10 33,000 (6,000) 1,200 33,200 d
a Year 0: 0.60 × $ 20,700; Years 1–9: 0.60 × $ 30,700; Year 10: 0.60 × $ 10,000
b 0.40 × $ 3,000
c Includes deposit of $5,000 and purchase of contract of $30,000
d Includes the refund of the $5,000 deposit

451
13–26 Continued

Lease—without service contract:

Year ( 1 – t)R – (1 – t)C a Cash Flow


0 $(12,420) $(17,420) b
1 $33,000 (24,420) 8,580
2 33,000 (24,420) 8,580
3 33,000 (24,420) 8,580
4 33,000 (24,420) 8,580
5 33,000 (24,420) 8,580
6 33,000 (24,420) 8,580
7 33,000 (24,420) 8,580
8 33,000 (24,420) 8,580
9 33,000 (24,420) 8,580
10 33,000 (12,000) 26,000 c
a Year 0: 0.60 × $ 20,700; Years 1–9: 0.60 × $ 40,700; Year 10: 0.60 × $ 20,000
b Includes deposit of $5,000
c Includes return of $5,000 deposit

2. Purchase:

Year Cash Flow Discount Factor Present Value


0 $(100,000) 1.000 $(100,000)
1 26,716 0.877 23,430
2 30,796 0.769 23,682
3 27,996 0.675 18,897
4 25,996 0.592 15,390
5 24,572 0.519 12,753
6 24,568 0.456 11,203
7 24,572 0.400 9,829
8 22,784 0.351 7,997
9 21,000 0.308 6,468
10 33,000 0.270 8,910
NPV $ 38,559

452
13–26 Concluded

Lease—without service contract:

Year Cash Flow Discount Factor Present Value


0 $(17,420) 1.000 $ (17,420)
1–9 8,580 4.946 42,437
10 26,000 0.270 7,020
NPV $ 32,037

The equipment should be purchased.

It was not necessary to include all of the costs and revenues for each alterna- tive. The operating
revenues and operating costs could have been eliminated because they are exactly the same for both
alternatives and, thus, not rele- vant.

3. Lease—with service contract:

Year Cash Flow Discount Factor Present Value


0 $(47,420) 1.000 $ (47,420)
1–9 15,780 4.946 78,048
10 33,200 0.270 8,964
NPV $ 39,592

The equipment should now be leased. Since the revenues of $55,000 per year are the same for both
alternatives, they could be excluded from the analysis.

453
13–27

1. Scrubbers and Treatment Facility (expressed in thousands):

Year (1 – t)R a – (1 – t)C b tNC c CF df Present Value


0 $(25,000) 1.000 $(25,000)
1 $3,000 $(7,200) $2,000 (2,200) 0.909 (2,000)
2 3,000 (7,200) 3,200 (1,000) 0.826 (826)
3 3,000 (7,200) 1,920 (2,280) 0.751 (1,712)
4 3,000 (7,200) 1,152 (3,048) 0.683 (2,082)
5 3,000 (7,200) 1,152 (3,048) 0.621 (1,893)
6 3,600 d (7,200) 576 (3,024) 0.564 (1,706)
NPV $(35,219 )
a 0.6 × $ 5,000,000
b 0.6 × $ 12,000,000
c Year 1: 0.4 × 0.2 × $ 25,000,000; Year 2: 0.4 × 0.32 × $ 25,000,000; Year 3: 0.4 ×

0.192 × $ 25,000,000; Years 4 and 5: 0.4 × 0.1152 × $ 25,000,000; Year 6: 0.4 ×


0.0576 × $ 25,000,000
d Includes salvage value (0.6 × $ 1,000,000) Process Redesign

(expressed in thousands):

Year ( 1 – t)R a – (1 – t)C b tNC c CF df Present Value


0 $(50,000) 1.000 $ (50,000)
1 $9,000 $(3,000) $4,000 10,000 0.909 9,090
2 9,000 (3,000) 6,400 12,400 0.826 10,242
3 9,000 (3,000) 3,840 9,840 0.751 7,390
4 9,000 (3,000) 2,304 8,304 0.683 5,672
5 9,000 (3,000) 2,304 8,304 0.621 5,157
6 9,900 d (3,000) 1,152 8,052 0.564 4,541
NPV $ (7,908 )
a 0.6 × $ 15,000,000
b 0.6 × $ 5,000,000
c Year 1: 0.4 × 0.2 × $ 50,000,000; Year 2: 0.4 × 0.32 × $ 50,000,000; Year 3: 0.4 ×

0.192 × $ 50,000,000; Years 4 and 5: 0.4 × 0.1152 × $ 50,000,000; Year 6: 0.4 ×


0.0576 × $ 50,000,000
d Includes salvage value (0.6 × $ 1,500,000)

The process redesign option is less costly and should be implemented.

454
13–27 Concluded

2. The modification will add to the cost of the scrubbers and treatment facility (present value is 0.751 × $ 4,000,000
= $3.004 million). Cleaning up the lake can be viewed as a cost of the first alternative or a benefit of the
second. The present value of the cleanup cost gives an additional cost (benefit) between $15.02 and
$22.53 million to the first (second) alternative (0.751 × $ 20,000,000 and 0.751 × $ 30,000,000). Adding in
the benefit of avoiding the cleanup cost makes the process redesign alternative profitable (yielding a
positive NPV). Ecoefficiency basically argues that productive efficiency increases as envi- ronmental
performance increases and that it is cheaper to prevent environ- mental contamination than it is to clean
it up once created. The first alterna- tive is a “cleanup” approach, while the second is a “prevention”
approach.

13–28

1. Original savings and investment: (14 percent

rate):

Year CF df Present Value


0 $(45,000,000) 1.000 $(45,000,000)
1–20 $4,000,000 6.623 26,492,000
20 5,000,000 0.073 365,000
NPV $(18,143,000 )

455
13-28 Continued

(20 percent rate):

Year CF df Present Value


0 $(45,000,000) 1.000 $(45,000,000)
1–20 $4,000,000 4.870 19,480,000
20 5,000,000 0.026 130,000
NPV $(25,390,000 )

2. Total benefits: ($4,000,000 + $1,000,000 + $2,400,000) (14 percent rate):

Year CF df Present Value


0 $(45,000,000) 1.000 $(45,000,000)
1–20 7,400,000 6.623 49,010,200
20 5,000,000 0.073 365,000
NPV $ 4,375,200

(20 percent rate):

Year CF df Present Value


0 $(45,000,000) 1.000 $(45,000,000)
1–20 7,400,000 4.870 36,038,000
20 5,000,000 0.026 130,000
NPV $ (8,832,000 )

456
13-28 Concluded

3. Analysis with increased investment:


Year CF df Present Value
0 $(48,000,000) 1.000 $(48,000,000)
1–20 7,400,000 6.623 49,010,200
20 5,000,000 0.073 365,000
NPV $ 1,375,200

(20 percent rate):

Year CF df Present Value


0 $(48,000,000) 1.000 $(48,000,000)
1–20 7,400,000 4.870 36,038,000
20 5,000,000 0.026 130,000
NPV $ (11,832,000 )

4. The automated plant is an attractive investment when the additional benefits are considered—it
promises to return at least the cost of capi- tal (even for the high-cost scenario). Using the
hurdle rate of 20 per- cent is probably too conservative—especially given the robustness of the
outcome using the cost of capital. The company should invest in the new system.

13–29

1. Year Cash Flow * Discount Factor Present Value


0 $(860,000) 1.000 $(860,000)
1 196,400 0.862 169,297
2–5 230,800 2.412 556,690
6 196,400 0.410 80,524
7 162,000 0.354 57,348
8 162,000 0.305 49,410
NPV $ 53,269

* After-tax cash flow = (0.60 × $ 270,000) + (0.40 × annual depreciation) for Years 1–6. Depreciation =
$860,000/5 = $172,000 with ½ taken in Year 1 and ½ taken in Year 6.

457
13–29 Concluded

2. Year Cash Flow * Discount Factor Present Value


0 $(920,000) 1.000 $(920,000)
1 186,800 0.862 161,022
2–5 223,600 2.412 539,323
6 186,800 0.410 76,588
7 150,000 0.354 53,100
8 150,000 0.305 45,750
NPV $ (44,217 )

* After-tax cash flow = (0.60 × $ 250,000) + (0.40 × annual depreciation) for Years 1–6. Depreciation =
$920,000/5 = $184,000 with ½ taken in Year 1 and ½ taken in Year 6.

After the fact, the decision was not a good one.

3. The $100,000 per year is an annuity that produces an after-tax cash flow of $60,000 ($100,000 × 0.60). The
present value of this annuity is $260,640 (4.344
× $ 60,000). This restores the project to a positive NPV position ($260,640 – $44,217 = $216,423).

4. A postaudit can help ensure that a firm’s resources are being used wisely. It may reveal that additional
resources ought to be invested or that corrective action be taken so that the performance of the
investment is improved. A postaudit may even signal the need to abandon a project or replace it with a
more viable alternative. Postaudits also provide information to managers so that their future capital
decision making can be improved. Finally, postaudits can be used as a means to hold managers
accountable for their capital in- vestment decisions.

458
13–30

1. Old system (dollars in thousands):

Year (1 – t)R a – (1 – t)C b tNC c Cash Flow df Present Value *


0 $ 0 1.000 $ 0
1–9 $18,000 $(13,440) $240 4,800 4.303 20,654
10 18,000 (13,440) — 4,560 0.191 871
NPV $ 21,525
a 0.6 × $ 300 × 100,000
b 0.6 × $ 224 × 100,000
c 0.4 × $ 600,000

* Rounded

New system (dollars in thousands):

Year (1 – t)R a – (1 – t)C b tNC c Cash Flow df Present Value *


0 $(50,040) 1.000 $ (50,040)
1–10 $18,000 $(7,320) $2,160 12,840 4.494 57,703
NPV $ 7,663
a Direct materials (0.75 × $ 80)
$ 60
Direct labor (1/3 × $ 90) 30
Volume-related OH ($20 – $5) 15
Direct FOH ($34 – $17) 17
Unit cost $122

Total cash expenses = $122 × 100,000 = $12,200,000 After-tax cash


expenses = 0.6 × $ 12,200,000
b Year 0: Tax savings on loss from sale of old machine =

0.4 × ($ 6,000,000 – $600,000 – $3,000,000) = $960,000


Years 1–10: Depreciation = 0.4 × $ 54,000,000/10
c Net outlay = $54,000,000 – $3,000,000 – $960,000 = $50,040,000 The company should

keep the old system.

459
13–30 Continued

2. Old system (dollars in thousands):

Year (1 – t)R – (1 – t)C tNC Cash Flow df Present Value *


0 $ 0 1.000 $ 0
1–9 $18,000 $(13,440) $240 4,800 5.328 25,574
10 18,000 (13,440) — 4,560 0.322 1,468
NPV $ 27,042

New system (dollars in thousands):

Year (1 – t)R – (1 – t)C tNC Cash Flow df Present Value


0 $(50,040) 1.000 $ (50,040)
1–10 $18,000 $(7,320) $2,160 12,840 5.650 72,546
NPV $ 22,506

Notice how much more attractive the automated system becomes when the cost of capital is used as the
discount rate.

* Rounded

3. Old system with declining sales (dollars in thousands):

Year (1 – t)R – (1 – t)C tNC Cash Flow df Present Value **


0 $ 0 1.000 $ 0
1 $18,000 $(13,440) $240 4,800 0.893 4,286
2 16,200 (12,300) 240 4,140 0.797 3,300
3 14,400 (11,160) 240 3,480 0.712 2,478
4 12,600 (10,020) 240 2,820 0.636 1,794
5 10,800 (8,880) 240 2,160 0.567 1,225
6 9,000 (7,740) 240 1,500 0.507 761
7 7,200 (6,600) 240 840 0.452 380
8 5,400 (5,460) 240 180 0.404 73
9 3,600 (4,320) 240 (480) 0.361 (173)
10 1,800 (3,180) — (1,380) 0.322 (444)
NPV $13,680

* Cash expenses = Fixed + Variable


= $3,400,000 (Direct fixed) + $190X
where X = Units sold
After-tax cash expense = $2,040,000 + $114X (0.6 × formula above)

* * Rounded

460
13–30 Concluded

4. For the new system, salvage value would increase after-tax cash flows in Year 10 by $2,400,000 (0.6 × $ 4,000,000).
Using the discount factor of 0.322, the NPV of the new system will increase from $22,506,000 to
$23,278,800 (an in- crease of 0.322 × $ 2,400,000), making the new investment more attractive. The NPV
analysis for the old system remains unchanged.

5. Requirement 2 illustrates the importance of using the correct discount rate. The rate of 18 percent made the
automated alternative look totally unappeal- ing. By using the correct rate, the alternative showed a large
net present val- ue, although it was still less than the NPV of the old system. The old system’s
projections of future revenues, however, were overly optimistic. The old sys- tem was not able to
produce the same level of quality as the new system and took longer to produce—factors that, when
taken together, would reduce the competitive position of the firm and cause sales to decline. When this
effect was considered (with the correct discount rate), the new system dominated the old. Inclusion of
salvage value simply increased this dominance.

13–31

1. Old operating system:

Year Cash Flow * df Present Value


0 $ 0 1.000 $ 0
1–10 (197,000) 5.650 (1,113,050 )
NPV $(1,113,050 )

* [–(0.66 × $ 350,000) + (0.34 × $ 100,000)]

461
13–31 Continued

Flexible system (using MACRS depreciation):

Year (1 – t)C a tNC b Cash Flow df Present Value *


0 — — $(1,250,000) 1.000 $(1,250,000)
1 $(62,700) $ 60,733 (1,967) 0.893 (1,757)
2 (62,700) 104,083 41,383 0.797 32,982
3 (62,700) 74,333 11,633 0.712 8,283
4 (62,700) 53,083 (9,617) 0.636 (6,116)
5 (62,700) 37,953 (24,747) 0.567 (14,032)
6 (62,700) 37,910 (24,790) 0.507 (12,569)
7 (62,700) 37,953 (24,747) 0.452 (11,186)
8 (62,700) 18,955 (43,745) 0.404 (17,673)
9 (62,700) (62,700) 0.361 (22,635)
10 (62,700) (62,700) 0.322 (20,189)
NPV $(1,314,892 )
a$ 95,000 × 0.66
b$ 1,250,000 × 0.1429 × 0.34, $1,250,000 × 0.2449 × 0.34, etc. (MACRS deprecia- tion for a seven-year asset)

* Rounded

2. Old operating system (with adjustment for inflation):

Year Cash Flow * Discount Factor Present Value **


0 $ 0 1.000 $ 0
1 (206,240) 0.893 (184,172)
2 (215,850) 0.797 (172,032)
3 (225,844) 0.712 (160,801)
4 (236,237) 0.636 (150,247)
5 (247,047) 0.567 (140,076)
6 (258,289) 0.507 (130,953)
7 (269,981) 0.452 (122,031)
8 (282,140) 0.404 (113,985)
9 (294,786) 0.361 (106,418)
10 (307,937) 0.322 (99,156)
NPV $(1,379,871 )

* {–[(1.04) n × $ 350,000 × 0.66] + [0.34 × $ 100,000]}, n = 1 ... 10


* * Rounded

462
13–31 Concluded

Flexible system (with adjustment for inflation):

Year Cash Flow * Discount Factor Present Value


0 $(1,250,000) 1.000 $(1,250,000)
1 (4,475) 0.893 (3,996)
2 36,267 0.797 28,905
3 3,804 0.712 2,708
4 (20,267) 0.636 (12,890)
5 (38,331) 0.567 (21,734)
6 (41,426) 0.507 (21,003)
7 (44,556) 0.452 (20,139)
8 (66,854) 0.404 (27,009)
9 (89,242) 0.361 (32,216)
10 (92,811) 0.322 (29,885)
NPV $(1,387,259 )

* {–[(1.04) n × $ 95,000 × 0.66] + [Annual depreciation × 0.34]}, n = 1 ... 10; depre- ciation is MACRS.

3. It is very important to adjust cash flows for inflationary effects. Since the re- quired rate of return for
capital budgeting analysis reflects an inflationary component at the time NPV analysis is performed, a
correct analysis also re- quires that the predicted operating cash flows be adjusted to reflect inflatio-
nary effects. If the operating cash flows are not adjusted, then an erroneous decision may be the
outcome. Notice, for example, that after adjusting for in- flation, there is virtually no difference between
the two systems—and given the intangibles associated with the flexible system, it would likely be
chosen.

463
MANAGERIAL DECISION CASES

13–32

The statement that Manny would normally have taken the first bid without hesita- tion implies that the bid met
all of the formal requirements outlined by the com- pany. If Manny’s friend had met the bid as requested, then
presumably Manny would have offered the business to his friend. The motive for this was friendship and
possibly carried with it past experience in dealing with Todd’s company. Per- haps there was some
uncertainty in Manny’s mind about the low bidder’s ability to execute the requirements of the bid, especially
since the winning bid was from out of state. If there was some legitimate concern about the winning bid and
Man- ny was hopeful of eliminating this concern by dealing with a known quantity, then it could be argued
that the call to Todd was justifiable. If, on the other hand, the only motive was friendship and Manny was
confident that the winning bid could execute (as he appears to have been), then the call was improper.
Objectivity and integrity in carrying out the firm’s bidding policies are essential. The fact that Manny was
tempted by Todd’s enticements and appeared to be lean- ing toward accepting Todd’s original offer
compounds the difficulty of the issue. If Manny actually accepts Todd’s offer and grants the business at the
original price and accepts the gifts, then his behavior is unquestionably unethical. Some of the standards of
ethical conduct that would be violated are listed below.

II. Confidentiality

1. Refrain from disclosing confidential information acquired in the course of their work except when
authorized, unless legally obligated to do so.

3. Refrain from using or appearing to use confidential information acquired in the course of their work
for unethical or illegal advantage either perso- nally or through a third party.

III. Integrity

3. Refuse any gift, favor, or hospitality that would influence their actions.

464
13–33

1. Shaftel Ready Mix Income


Statement For the Year Ended
20XX

Sales (35,000 × $ 45) .................................................. $ 1,575,000


Less: Variable expenses ($35.08 × 35,000) ............. 1,227,800
Contribution margin ................................................. $ 347,200
Less fixed expenses:
Salaries ................................................................. $135,000
Insurance .............................................................. 75,000
Telephone ............................................................. 5,000
Depreciation ......................................................... 56,200*
Utilities .................................................................. 25,000 296,200
Net income ................................................................. $ 51,000

* Reported depreciation erroneously included $2,000 for the land. Ratio of net income

to sales = $51,000/$1,575,000 = 3.24%

Karl is correct that the return on sales is significantly lower than the company average.

2. Payback period = Original investment/Annual cash flow


= $352,000/$107,200* = 3.28
years

* Net income of $51,000 + depreciation of $56,200

Karl is not right. The book value of the equipment and the furniture should not be included in the amount
of the original investment because there is no opportunity cost associated with them. Excluding the
book value reduces the investment from $582,000 to $352,000. Karl’s payback would be correct if the
equipment and furniture could be sold for their book value because there would now be an opportunity
cost associated with them and that cost should be included in the original investment.

465
13–33 Continued

3. NPV:

Year Cash Flow Discount Factor Present Value


0 $(352,000) 1.000 $(352,000)
1–10 107,200 6.145 658,744
NPV $ 306,744

IRR: df = I/CF

= $352,000/$107,200 = 3.284

Thus, the IRR is between 26 percent and 28 percent. If the furniture and

equipment can be sold for book value: NPV:

Year Cash Flow Discount Factor Present Value


0 (582,000) 1.000 $(582,000)
1–10 107,200 6.145 658,744
NPV $ 76,744

IRR:

df = 582,000/$107,200
= 5.4291

Thus, the IRR is between 12 percent and 14.88 percent. Using equipment and furniture for
the plant INSTEAD of selling it represents an investment equal to the market value of the assets;
the op- portunity cost is the key concept here.

466
13–33 Continued

4. Break-even:

$45X = $35.08X + $296,200 $9.92X =


$296,200
X = 29,859 cubic yards NPV (using

break-even amount):

Year Cash Flow Discount Factor Present Value


0 $(352,000) 1.000 $(352,000)
1–10 56,200 6.145 345,349
NPV $ (6,651 )

IRR:

df = $352,000/$56,200
= 6.263

Thus, the IRR is between 8 percent and 10 percent.

The investment is not acceptable, although it came close. It is possible to have a positive NPV at the
break-even point. Break-even is defined for ac- counting income, not for cash flow. Since there are
noncash expenses de- ducted from revenues, accounting income understates cash income. Zero in-
come does not mean zero cash inflows.

467
13–33 Concluded

5. Cost of capital = 10 percent for 10 years, so df = 6.145

df = I/CF
6.145 = $352,000/CF
6.145 × CF = $352,000
CF = $57,282 Cash

flow $ 57,282
Less: Depreciation 56,200
Net income $ 1,082

Net income = Sales – Variable expenses – Fixed expenses


$1,082 = $45X – $35.08X – $296,200 $1,082 =
$9.92X – $296,200 $297,282 = $9.92X

X = 29,968 cubic yards

Sales $ 1,348,560
Less: Variable expenses 1,051,277
Contribution margin $ 297,283
Less: Fixed expenses 296,200
Net income $ 1,083*

* Difference due to rounding

13–34

1. After-tax cash flows Manual

system:

Year (1 – t)R a – (1 – t)C b tNC c Cash Flow


1–10 $264,000 $(198,000) $6,800 $72,800
a 0.66 × $ 400,000
b 0.66 × $ 228,000 + [0.66 × ($ 92,000 – $20,000)]
c 0.34 × $ 20,000

468
13–34 Continued

Robotic system:

Year (1 – t)R a – (1 – t)C b tNC c Cash Flow


0 $(425,600) d
1 $264,000 $(136,720) $25,265 152,545
2 297,000 (146,220) 43,298 194,078
3 330,000 (155,720) 30,922 205,202
4 396,000 (174,720) 22,082 243,362
5 396,000 (174,720) 15,788 237,068
6 396,000 (174,720) 15,771 237,051
7 396,000 (174,720) 15,788 237,068
8 396,000 (174,720) 7,885 229,165
9 396,000 (174,720) 221,280
10 409,200 (174,720) 234,480
a Year 1: 0.66 × $ 400,000; Year 2: 0.66 × $ 450,000; Year 3: 0.66 × $ 500,000; Years 4–9: 0.66 × $ 600,000;
Year 10: 0.66 × $ 620,000 (includes salvage value as a gain)

b After-tax cash expenses: Fixed:

Direct labor $20,000 × 0.66 = $13,200 (one operator)


Other $72,000 × 0.66 = 47,520 (from income statement)
$60,720

Variable:
Direct materials (0.16 × Sales) × 0.75 × 0.66
Variable overhead (0.09 × Sales) × 0.6667 × 0.66
Variable selling (0.12 × Sales) × 0.90 × 0.66
Total 0.19 × Sales

Total after-tax cash expenses = $60,720 + (0.19 × Sales)


c Years 1–8: MACRS: 0.1429 × $ 520,000 × 0.34, 0.2449 × $ 520,000 × 0.34, etc.

d Net investment:

Purchase costs $(520,000)


Recovery of capital 40,000
Tax savings on loss 54,400*
$(425,600 )

* Year 0: 0.34 × ($ 200,000 – $40,000)

469
13–34 Continued

2. Manual system:
Year Cash Flow Discount Factor Present Value
0 $ 0 1.000 $ 0
1–10 72,800 5.650 411,320
NPV $411,320

Robotics system:

Year Cash Flow Discount Factor Present Value


0 $(425,600) 1.000 $(425,600)
1 152,545 0.893 136,223
2 194,078 0.797 154,680
3 205,202 0.712 146,104
4 243,362 0.636 154,778
5 237,068 0.567 134,418
6 237,051 0.507 120,185
7 237,068 0.452 107,155
8 229,165 0.404 92,583
9 221,280 0.361 79,882
10 234,480 0.322 75,503
NPV $ 775,911

The company should invest in the robotic system.

470
13–34 Concluded

3. Managers may use a higher discount rate as a way to deal with the un- certainty in future cash flows. The
higher rate “protects” the manager from unpleasant surprises. Since a higher rate favors investments
that provide returns quickly, managers may be motivated by personal short-run considera- tions (e.g.,
bonuses and promotion opportunities). Using a discount rate of 12 percent:

Yea r Cash Flow Discount Factor Present Value


0 $(340,000) 1.000 $(340,000)
1–10 80,000 5.650 452,000
NPV $ 112,000

Using a discount rate of 20 percent:

Year Cash Flow Discount Factor Present Value


0 $(340,000) 1.000 $(340,000)
1–10 80,000 4.192 335,360
NPV $ (4,640 )

If the 20 percent discount rate is used, the company would not acquire the robotic system.

Using an excessive discount rate could seriously impair the ability of the firm to stay competitive. An
excessive discount rate may lead a firm to reject new technology that would increase quality and
productivity. As other firms invest in the new technology, their products will be priced lower and be of
higher quality—features that would likely cause severe difficulty for the more con- servative firm.

RESEARCH ASSIGNMENTS

13–35

Answers will vary.

13–36

Answers will vary.

471
472