Monthly Archives: October 2013

W8_ANG_WACC for Student Pick-up Service


Problem Statement

As per my promise on my last blog posting, now I would discuss to determine MARR in the arrangement that the fund is mixed between equity and debt (borrowed fund). I would put two scenarios on the borrowed fund: 1st is ten million rupiah (21.74% of investment) and 2nd is forty million rupiah (86.96% of investment) which both are using the same pessimistic approach as mentioned on my 5 blog posting. By simulating these two scenarios expected that we could understand that changing the percentage of borrowing fund not only impacts the MARR, but also IRR of investment.

In the next blog posting, I plan to discuss ERR triggered by when I calculated the same borrowed fund scenario using most likely approach, the IRR result is very high and I suspect it might be problem of IRR calculation method as mentioned on Engineering Book page 205.

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Filed under Anggono M, Week 08

W9.1_HWB_Soybean in Gold Equivalent Value


1. Problem Definition

Indonesia is still importing 75% of the domestic soybean demand of 2.5 million tons. The high dependence on imported soybeans make the government was powerless when soybean prices rose due to the weakening of the rupiah against the U.S. dollar (U.S.).[1] As we know that soybean is the basic ingredients for tofu and tempe which are the most popular food here. Now I try to made 12 months future cost estimation of imported soybean price and use a new alternative currency reference with gold that consider as stable currency.

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Filed under Hari W, Week 09

W9_HWB_Soybean in Gold Equivalent Value


1. Problem Definition

Indonesia is still importing 75% of the domestic soybean demand of 2.5 million tons. The high dependence on imported soybeans make the government was powerless when soybean prices rose due to the weakening of the rupiah against the U.S. dollar (U.S.).[1] As we know that soybean is the basic ingredients for tofu and tempe which are the most popular food here. Now I try to made 6 months future cost estimation of imported soybean price and use a new alternative currency reference with gold that consider as stable currency.

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3 Comments

Filed under Hari W, Week 09

W7_ANG_MARR based on full equity fund for Student Pick-up Service


Problem Statement

For the follow up of CfH comment about my Week 5th Blog posting, in this posting I will discuss about the value of Minimum Attractive Rate of Return (MARR) as our basis to determine whether the projected rate of return of having student pick up service business is attractive enough to be proceeded or not.

In this posting the determination of MARR is based on an assumption that the investment is fully funded by equity of personal investor. For the next blog posting, I plan to put assumption that the fund will be mixed between equity and debt (borrowed fund) to discuss about the Weighted Average Cost of Capital (WACC).

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Filed under Anggono M, Week 07

W8_ASY_Workflow for Productivity Improvement


Problem Statement

Here in Indonesia, beside in new field there are many oil and gas companies are operating in a mature field, problems raised when the company faced to manage how to achieve high recovery rates,how to use personnel effectively, how improve production and create an efficient cost structure. That would mean improving business processes, formalizing its corporate knowledge and supporting integrated long-term asset planning and short-term operational planning. I want to continue from my W7 blog discuss here about how could the company introduce workflow improve productivity as well as reduce maintenance cost to maximize production without disruptions.

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Filed under Asyhad, Week 08

W8.1_AEP_Cow saving for Eid al-Adha


ox year

Problem identification

Performing sacrifice is something that is highly recommended for every wealthy Muslim. Allah has determined camels, oxen, goats and sheep as sacrificial animals. A goat or a sheep slaughtered on Eid al-Adha feast is sufficient for a family. A Camel or a cow can be sacrificed for the seven people in associate. Livestock prices increasing every year, influenced by market supply and demand, import policies, national food security enhancement programs, as well as inflation. According to 2013, a unit price of a live cow was Rp47 000 per kg, while in 2009 price only Rp30 000 per kg. In today’s rupiah, the price in 2009 is equal to Rp36 000. Purchase power of Rupiah to the livestock prices is decreasing.

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Filed under Afriandi EP, Week 08

W8_TOM_ Lease VS Purchase Impact to Profit & Loss Statement with Case Study: a Mini-Mart Business


1. Problem Definition

As I have mentioned in my previous blog (https://simatupangaace2014.wordpress.com/2013/10/18/w7_tom_-lease-vs-purchase-own-analysis-of-a-diesel-generator/) , I will try to simulate how Lease VS Purchase impacts the profitability (Profit and Loss Statement or P&L).

Continuing from previous blog, the case study is still a mini-mart business.

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Filed under Tommy Edward, Week 08

W8_AEP_Cow saving for Eid al-Adha


ox year

Problem identification

Performing sacrifice is something that is highly recommended for every wealthy Muslim. Allah has determined camels, oxen, goats and sheep as sacrificial animals. A goat or a sheep slaughtered on Eid al-Adha feast is sufficient for a family. A Camel or a cow can be sacrificed for the seven people in associate. Livestock prices increasing every year, influenced by market supply and demand, import policies, national food security enhancement programs, as well as inflation. According to 2013, a unit price of a live cow was Rp47 000 per kg, while in 2009 price only Rp30 000 per kg. In today’s rupiah, the price in 2009 is equal to Rp36 000. Purchase power of Rupiah to the livestock prices is decreasing.

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4 Comments

Filed under Afriandi EP, Week 08

W8.2_HWB_Forecast of Construction Cost with Gold Price


1. Problem Definition

In this 8th blog I will try to calculate the construction price forecast for Drilling Site Preparation (DSP) for year 2022 with predictions based on the gold price increases. As we know the value of gold has relative purchasing power remains. The cost price that would be predicted is for budgeting POFD (Plan of Future Development) in onshore oil and gas field as part of the 30 years contract.

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3 Comments

Filed under Hari W, Week 08

W8.1_HWB_Forecast of Construction Cost with Gold Price


1. Problem Definition

In this 8th blog I will try to calculate the construction price forecast for Drilling Site Preparation (DSP) for year 2022 with predictions based on the gold price increases. As we know the value of gold has relative purchasing power remains. The cost price that would be predicted is for budgeting POFD (Plan of Future Development) in onshore oil and gas field as part of the 30 years contract.

Continue reading

1 Comment

Filed under Hari W, Week 08