In early 2023, an Industrial Engineer at PT XYZ has succeeded in improving the Production Line with
Question:
In early 2023, an Industrial Engineer at PT XYZ has succeeded in improving the Production Line with a production line - automation based project. The investment costs IDR 2,400,000,000,-, but is estimated to save IDR 700,000,000 per year over the next 5 years. Using a reference interest rate of 14% per annum, determine:
a.What is the equivalent value of the investment spent at the end of the 5th year?
b.What is the equivalent value of the total cost savings obtained each year at the end of the 5th year?
c.What is the present equivalent (PV) value of the profit of an automation-based production line project?
d.What would be the equivalent value of the investment if fees were charged annually?
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr