A company plans to buy a machine worth Rp 300 million with a 4-year economic life and
Question:
A company plans to buy a machine worth Rp 300 million with a 4-year economic life and residual value of Rp 20 million. But at the end of its economic life the machine is estimated to be sold at Rp 17 million. For the operation of the machine required working capital of Rp 15 million which is issued only once, it’s when the beginning of the operation of the machine. Variable cost per year is estimated at Rp 600 million, while the fixed cost per year beyond the cost of depreciation of Rp 500 million. The annual sales level is estimated in the equal amount and value for 4 years. If known NPV company Rp 1000 million, 25% and desired return 20%, then what is the company's sales rate per year?
Project Management A Managerial Approach
ISBN: 978-0470226216
7th Edition
Authors: Jack R. Meredith, Samuel J. Mantel,