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1. You are offered a current loan of 8,000 (in million rupiah) but must make a return during 4 years as follows: Year 1: 4,400, Year 2: 2,700, Year 3: 1,900, Year 4: 1,500. a. What is the IRR of the offer? b. If the discount rate is 10%, do you accept the offer? explain C. If the discount rate is 20%, do you accept the offer? Explain

1. You are offered a current loan of 8,000 (in million rupiah) but must make a return during 4 years as follows: Year 1: 4,400, Year 2: 2,700, Year 3: 1,900, Year 4: 1,500. a. What is the IRR of the offer? b. If the discount rate is 10%, do you accept the offer? explain C. If the discount rate is 20%, do you accept the offer? Explain

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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3. ABOUT 1. You are offered a current loan of 8,000 (in million rupiah) but must make a return during 4 years as follows: Year 1: 4,400, Year 2: 2,700, Year 3: 1,900, Year 4: 1,500. a. What is the IRR of the offer? b. If the discount rate is 10%, do you accept the offer? explain C. If the discount rate is 20%, do you accept the offer? Explain 2. Capital structure of PT. PNA now is: IDR 2.000.000.000,- Preference shares IDR 3,000,000,000,- Debt Ordinary shares IDR 5,000,000,000 Fees for each funding, debt 6%, Preferred stock 6%, Commont stock 10% and tax 50%. The amount of profit for ordinary shareholders that is currently Rp. 2,000,000,000 and 50% will be paid as dividends, and the rest will be withheld. The company will use the retained earnings as additional capital with the assumption that the capital composition and average are maintained its cost of capital. From the data above calculate: A. Weighted cost of capital B. Additional total capital so that the composition of new capital remains constant C. Calculate the new capital structure P.T. "FSW" in 2023 plans to produce and sell a product of 100,000 units a month. The company works an average of 30 (thirty) days a month. Each product requires 12 kg of raw materials. The purchase price of raw materials per kg is IDR 1 million. Purchases of raw materials are always done on a regular basis cash. After being purchased while waiting for the production process, raw materials are stored in the warehouse for 20 days (no admin fees during storage). While the production process takes 4 days. After completion of production before being sold, the finished product must be dried which takes 7 days. Sales of finished products are made on credit and billed for 30 days. The direct labor wage is IDR 10,000 per unit. Marketing and administration costs are estimated at IDR 150,000,000 per month. As a precaution, a petty cash fund of IDR 30,000,000 is provided. From the data above, calculate the working capital needs of PT "FSW" for 2023.
Transcribed Image Text:3. ABOUT 1. You are offered a current loan of 8,000 (in million rupiah) but must make a return during 4 years as follows: Year 1: 4,400, Year 2: 2,700, Year 3: 1,900, Year 4: 1,500. a. What is the IRR of the offer? b. If the discount rate is 10%, do you accept the offer? explain C. If the discount rate is 20%, do you accept the offer? Explain 2. Capital structure of PT. PNA now is: IDR 2.000.000.000,- Preference shares IDR 3,000,000,000,- Debt Ordinary shares IDR 5,000,000,000 Fees for each funding, debt 6%, Preferred stock 6%, Commont stock 10% and tax 50%. The amount of profit for ordinary shareholders that is currently Rp. 2,000,000,000 and 50% will be paid as dividends, and the rest will be withheld. The company will use the retained earnings as additional capital with the assumption that the capital composition and average are maintained its cost of capital. From the data above calculate: A. Weighted cost of capital B. Additional total capital so that the composition of new capital remains constant C. Calculate the new capital structure P.T. "FSW" in 2023 plans to produce and sell a product of 100,000 units a month. The company works an average of 30 (thirty) days a month. Each product requires 12 kg of raw materials. The purchase price of raw materials per kg is IDR 1 million. Purchases of raw materials are always done on a regular basis cash. After being purchased while waiting for the production process, raw materials are stored in the warehouse for 20 days (no admin fees during storage). While the production process takes 4 days. After completion of production before being sold, the finished product must be dried which takes 7 days. Sales of finished products are made on credit and billed for 30 days. The direct labor wage is IDR 10,000 per unit. Marketing and administration costs are estimated at IDR 150,000,000 per month. As a precaution, a petty cash fund of IDR 30,000,000 is provided. From the data above, calculate the working capital needs of PT "FSW" for 2023.
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