Projects Perspective:

Year

Projected cashflow
(Rp mil.)

60,812.00 66,893.20

73,582.52

80,940.77 89,034.85

Salvage value (Rp

mil.)
Net cashflow (Rp
mil.)

60,812.00
(304,060.
66,893.2 73,582.5 80,940.7 149,846.
60,812.00
00)
0
2
7
85
Assumption:

(Rp 30,411.47
NPV5 - 10 years
mil.)
Indonesia tax holiday
Cashflow has included
IRR depreciation
11%
Initial investment : MYR 100,000,000.00

Currency exchange (Spot rate on 22 Nov 2016): Rp 3,040.60 / MYR

Adjusted WACC on project: 15.5%

Projects Perspective:
Year
Projected cashflow
(Rp mil.)

60,812.00 66,893.20

73,582.52

Salvage value (Rp

mil.)
Net cashflow (Rp
mil.)

80,940.77 89,034.85

60,812.00
(304,060.
66,893.2 73,582.5 80,940.7 149,846.
60,812.00
00)
0
2
7
85

NPV
IRR

(Rp 30,411.47
mil.)
11%

Parents Perspective:

Parents Perspective:

Investment Decision:
Because of:
Low IRR
Negative NPV

What if NO withholding tax?