A with a total investment value of Rp. 500,000,000,- The ect is 5 years old. Based on the calculation the total present value of Rp. 56,000,000, B with a total investment value of Rp. 600,000,000, The t is 5 vears old Based on the caloulation of the present is (ears res
A with a total investment value of Rp. 500,000,000,- The ect is 5 years old. Based on the calculation the total present value of Rp. 56,000,000, B with a total investment value of Rp. 600,000,000, The t is 5 vears old Based on the caloulation of the present is (ears res
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
Problem 1PS
Related questions
Question
Help me fast ??

Transcribed Image Text:3. It is known that PT. Nikisae is currently facing 2 investment projects with the
following data:
a. Project A with a total investment value of Rp. 500,000,000,- The
project is 5 years old. Based on the calculation of the preset
value, the total present value of Rp. 56,000,000,
b. Project B with a total investment value of Rp. 600,000,000,- The
project is 5 years old. Based on the cal culation of the present value,
the total present value of Rp. 670,000,000,
c. Question:
a) If the company applies the Net Present Value method, which
projects should be implemented? Explain why.
b) If the company applies the Profitability Index method, which
project should be chosen? Explain why.
c) If the company has sufficient funding, what is the
investment decision? Explain why.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education