scholarly journals Assessment of Investment Plan and Financing Strategy for Hobbyist-Based Marketplace as a New Business from PT XYZ

2021 ◽  
Vol 4 (1) ◽  
pp. 1-9
Author(s):  
Putri Nadiya Intan Safira ◽  
Mandra Lazuardi Kitri
Keyword(s):  
Capital Budgeting ◽  
Payback Period ◽  
Intangible Asset ◽  
Full Time ◽  
Investment Plan ◽  
Best Value ◽  
New Business ◽  
Business Line ◽  
Financing Strategy ◽  
Successful Technology

PT XYZ is a successful technology enterprise, intends to open a new business line in e-commerce with unique selling propositions as a hobbyist-based marketplace. The marketplace, ABC, has built website and application generating event registration, communities, and articles. ABC still needs to reduce bugs and acquiring sellers to sell their products on. ABC needs to seek investments to fulfill the required financing at IDR 245,000,000 since PT XYZ needs to reallocate the money to another business. It firstly needs to determine the financial feasibility study of ABC with the capital budgeting method of NPV, IRR, and Payback Period. The amount of NPV at IDR 500,722,291.51, IRR at 13.32%, and PP at 4 years 2 months and 19 days are acceptable. The risk assessment with sensitivity analysis and Monte Carlo simulation determine the accounts that are risked by the assumption from the owners, the high risk are on Bike Selling quantity and COGS also Salary (Full-Time) with the probability of positive IRR at 97.80%. ABC wants to have financing schemes of 65%, 45%, and 25% equity where PT XYZ will give IDR 25,000,000 and intangible asset of IDR 61.600.000, this makes the 25% equity cannot be used, therefore it will be changed to 35.35% equity. With total share outstanding of 10.000 shares, the sales price of A, B, and C are IDR 46,199.55, IDR 43,803.40, and IDR 42,771.43 respectively. Capital structure analysis is needed to get the best value of ownership, yet, all alternatives can be used for attracting investors.

Some New Views on the Payback Period and Capital Budgeting Decisions

1969 ◽  
Vol 15 (12) ◽  
pp. B-594-B-607 ◽  
Author(s):  
H. Martin Weingartner
Keyword(s):  
Capital Budgeting ◽  
Payback Period

scholarly journals ANALISIS PENGANGGARAN MODAL PADA PT ULTRAJAYA MILK INDUSTRY Tbk. TAHUN 2013-2017

2018 ◽  
Vol 14 (2) ◽  
pp. 101-110
Author(s):  
Eka Lusvita Wulandari ◽  
Lily Rahmawati Harahap
Keyword(s):  
Opportunity Cost ◽  
Net Present Value ◽  
Average Rate ◽  
Capital Budgeting ◽  
Payback Period ◽  
Investment Analysis ◽  
Present Value ◽  
Investment Opportunities ◽  
Milk Industry ◽  
Real Losses

Capital budgeting in practice is intended to conduct an investment analysis of some available investment alternatives, and then determine or choose the most profitable investment. Inappropriateness in determining investment options will result in losses of either real losses or losses due to loss of opportunity to gain an opportunity cost that can actually be realized. The investment analysis will select the available investment opportunities, so that investment can be selected that will provide the greatest benefit of every dollar invested. Capital budgeting techniques can be analyzed by appraisal method of investment as follows: Average Rate of Return, Payback Period , Net Present Value, and Profitability Index.

scholarly journals Capital Budgeting Practice of Thai Firms

2015 ◽  
Vol 7 (1) ◽  
pp. 59-66
Author(s):  
Kereboon Champathed
Keyword(s):  
Capital Investment ◽  
Investment Decisions ◽  
Capital Budgeting ◽  
Payback Period ◽  
Internal Rate Of Return ◽  
Discounted Cash Flow ◽  
Investment Projects ◽  
Analysis Techniques ◽  
Corporate Capital ◽  
Individual Project

This paper examines the capital budgeting practice of Thai firms and the relationships between capital budgeting techniques and the firm size, length of operation and type of firms. The results indicated that most Thai firms used capital budgeting techniques for the analysis of investment projects (74.1%) and more than half (51.7%) of total corporate capital investment expenditures were screened by capital budgeting techniques. Discounted-cash-flow techniques were used by the majority of the firms with Internal Rate of Return (IRR) the most used evaluate techniques. Moreover, risk is quantified on individual project basis in assessing risk in investment decisions. Shortening the desired payback period was used most among the risk analysis techniques and the most likely scenario received most attention in the financial justification in relation to risk.

scholarly journals CAPITAL BUDGETING ANALYSIS OF INVESTMENT PROJECT FEASIBILITY IN PT INTEGRA INDOCABINET TBK

2019 ◽  
Vol 1 (2) ◽  
pp. 251-256
Author(s):  
Adetia Wardani ◽  
Ani Wulandari
Keyword(s):  
Decision Making ◽  
Investment Decisions ◽  
Investment Project ◽  
Secondary Data ◽  
Capital Budgeting ◽  
Payback Period ◽  
Property Companies ◽  
Hurdle Rate

This research is a case study conducted in one of the property companies in Sidoarjo, East Java, namely PT Integra Indocabinet Tbk ,. Based on secondary data, PT Integra Indocabinet has increased sales and profits from 2014 - 2018. Therefore, the owners want to expand their expansion by adding new factory facilities so they can get more optimal profits and can increase exports abroad. The research aims to provide assistance in the form of suggestions for decision making between feasible or not worthy of the investment carried out. Based on the calculation, obtained an NPV value of 195,510,594,699 ≥ 0 which means it is feasible to run, an IRR of 22%> hurdle rate (10%) which means it is feasible to run; Payback Period is 4 years 3 months> 5 years which means it is feasible to be implemented; The Profitability Index is 1.98> 0, which means it's worth running. The results of the analysis show that using Capital Budgeting techniques can be seen that investment decisions for expansion are feasible.

scholarly journals Changes Required to Sustain a Best Value Environment

2020 ◽  
Vol 7 (1) ◽  
pp. 26
Author(s):  
Antoinette Bos ◽  
Dean Kashiwagi ◽  
Isaac Kashiwagi
Keyword(s):  
Risk Mitigation ◽  
Professional Services ◽  
Main Stream ◽  
Full Time ◽  
State University ◽  
Arizona State University ◽  
Best Value ◽  
Private Entity ◽  
And Control

The BV environment was introduced into the Netherlands in 2004. By 2008 testing was being done by a partnership between Arizona State University and Scenter (private entity led by Sicco Santema). In 2010, the $1B fast track projects were procured by the Rijkswaterstaat, using the Best Value Procurement. By 2015, instead of the BV approach being treated as just another option, NEVI, the Dutch professional procurement group (third largest procurement group in the world) designated the Best Value Procurement as one of the main stream procurement approaches, and hired a full time Director to guide their Best Value Procurement training programs. However, in three major areas: IT delivery, professional services and the medical arena, buyers and larger-traditional vendors were having difficulty adapting to the approach. The BV approach utilizes the expertise of experts to replace the need for owner management, direction and control (MDC). However, a stumbling block occurred, when a “Best Value” vendor was selected, but did not have their detailed plan as a baseline from which they could identify risk that was outside of their control, their risk mitigation plan, and a simple way to create transparency to help the client/user. This is a case study that shows how the Best Value Approach was requiring a paradigm shift with both the user and the vendor, which neither party was well-prepared for.

scholarly journals The Hybrid Entrepreneurs Are Still Working Ambiguously: Will They Have Innovative Behavior

2021 ◽  
pp. 52-57
Author(s):  
Tyna Yunita
Keyword(s):  
Work Behavior ◽  
Full Time ◽  
Innovative Behavior ◽  
Competitive Situation ◽  
Innovative Work Behavior ◽  
Entrepreneurial Culture ◽  
Essential Components ◽  
New Business ◽  
Part Time ◽  
Innovative Work

Creativity and innovation are essential components of organizational success in today's economy, a new business advantage. Being innovative is the key so that an organization can continue to survive in a very competitive situation. The work required entrepreneurs to have innovative work behavior. On the other hand, some of them continue to run their business outside of their primary job. This study aims to understand the direct and indirect effects of entrepreneurial culture on innovative behavior in employees who have full-time and part-time jobs. This study identifies entrepreneurial engagement that links the two. The sample of this research was employees of financial institutions with 129 respondents. The research results show that the entrepreneurial culture of hybrid entrepreneurs correlated with entrepreneurial engagement and entrepreneurial engagement has an enormous influence on innovative behavior.

Ryan's Dilemma

2018 ◽  
pp. 1-11
Author(s):  
Neharika Vohra ◽  
Smriti Agarwalla ◽  
Snehil Basoya
Keyword(s):  
Family Business ◽  
Career Choices ◽  
Management Training ◽  
Business Leaders ◽  
Business Change ◽  
Accelerate Growth ◽  
New Business ◽  
Taking Charge ◽  
Business Line ◽  
One Year

The case narrates the experiences of a fresh MBA graduate, Ryan, from a top business school in India. After graduating, he joined his traditional family business with the aim to transform it, accelerate growth and start a new business line. Ryan starts several initiatives over one year but his efforts are met with failure. The case focuses on the decisions he takes and the difficulties he has in making career choices. The case lends itself to discussion on taking charge of a business, change management, training next generation family business leaders and career choices by young management graduates.

scholarly journals The Extent of Using and Trusting Capital Budgeting Methods in Projects Appraisal in Palestinian Corporations

2018 ◽  
Vol 12 (6) ◽  
pp. 151
Author(s):  
Ahmad N. H. Anabtawi
Keyword(s):  
Net Present Value ◽  
Capital Budgeting ◽  
Cash Flows ◽  
Payback Period ◽  
The Other ◽  
Present Value ◽  
Internal Rate ◽  
Public Corporations ◽  
Rate Of Returns ◽  
Accounting Rate

This research paper aims to find the degree of the use as well as the trust of the Net Present Value (NPV), Payback Period (PBP), Internal Rate of Returns (IRR) and Accounting Rate of Returns (ARR) as a key capital budgeting method. The research conducted on the listed corporations in Palestine which are 48 company. A questionnaire distributed on 77 financial and project/operations managers in these corporations with 67 responds. The result shows that both discounted and non-discounted cash flows methods are used and trusted by Palestine public corporations. However, on the other hand, the above four methods are volatile in term of use and trust. The most used and trusted capital budgeting method is the Payback period (PBP). This followed by the Net Present Value (NPV). Accounting Rate of Retunes (ARR) becomes third. Thus the least used and trusted method is the Internal Rate of Returns (IRR). 

THE ROLE OF THE PAYBACK PERIOD IN THE THEORY AND APPLICATION OF DURATION TO CAPITAL BUDGETING

1982 ◽  
Vol 9 (4) ◽  
pp. 511-522 ◽  
Author(s):  
Calvin M. Boardman ◽  
Walter J. Reinhart ◽  
Stephen E. Celec
Keyword(s):  
Capital Budgeting ◽  
Payback Period
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