Author Archives: anggonoaace

W9_ANG_ERR for Student Pick-up Service


Problem Statement

Following my previous blog posting, on this posting I would discuss to determine “GO” or “NO go” for Student pick-up service business investment using ERR calculation. I would use most likely approach assumption as discussed on my week 5th posting. This also to satisfy myself that in fact I had problem calculate rate of return using IRR formula based on most likely approach for my week 8th posting, that’s why yesterday I changed it to be based on pessimistic approach.

On this posting, I put three scenarios: 1st is fully using equity fund, 2nd is using mixed equity and debt which ten million rupiah of investment (21.74%) is using debt and 3rd is also mixed which forty million rupiah of investment (86.96%) is using debt. Continue reading

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Filed under Anggono M, Week 09

W10_ANG_Payback Period for Student Pick-up Service


Problem Statement

Following my previous blog posting, on this posting I would discuss about Payback Period of Student Pick-up Service Business. I would simulate the payback calculation to determine the decision of funding scheme based on payback period of investment. On this posting, I put three scenarios: 1st is fully using equity fund, 2nd is using mixed equity and debt which ten million rupiah of investment (21.74%) is using debt and 3rd is also mixed which forty million rupiah of investment (86.96%) is using debt.

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Filed under Anggono M, Week 10

W10_ANG_Payback Period for Student Pick-up Service


Problem Statement

Following my previous blog posting, on this posting I would discuss about Payback Period of Student Pick-up Service Business. I would simulate the payback calculation to determine the decision of funding scheme based on payback period of investment. On this posting, I put three scenarios: 1st is fully using equity fund, 2nd is using mixed equity and debt which ten million rupiah of investment (21.74%) is using debt and 3rd is also mixed which forty million rupiah of investment (86.96%) is using debt.

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Filed under Anggono M, Week 10

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

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

W6_ANG_Student Pick-up Service #2


Problem Statement

Continue to my previous posting about Student Pick-Up Service that with the low level of service price, the rate of return of pessimistic scenario is still above the assumed MARR; now I want to know the Break Event Point (BEP) of customer/ passenger required of this business.

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Filed under Anggono M, Week 06

W5_ANG_Student Pick-up Service


Problem Statement

In the middle of FAT activity in Dallas-TX, I’ve just got idea to use student pick-up service for the case contributing for Simatupang AACE 2014 blog. This case was triggered that my wife is tired with the traffic to accompany and pick up my daughter every day to her school and then planned to use student pick up service to school. She has checked the rate for go and forth is not expensive; it’s only IDR 500,000 per month so then across in my mind, is this business profitable with that level of price?

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Filed under Anggono M, Week 05

W4_ANG_Motorcycle Pay-in Installments


Problem Statement

Last weekend when I hang around in shopping mall near to my house in East Jakarta, there was Honda motorcycle exhibition. Without any serious purpose I asked the price of New Honda Vario 125 PGM FI Helm-in Idling Stop type, the Salesman offered me with brochure complete with price list and installment payment scheme from two different leasing companies. Just after that, flash in in my mind that I have a case for my Blog Posting: The price of motorcycle in cash is Rp. 16,450,000.-, if I want to buy in installments, then only allocate down payment no more than three million rupiah and monthly payment about one million rupiah, which leasing company should I choose?

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Filed under Anggono M, Week 04

W3_ANG_AC Selection Considering Attributes


Problem Statement

Continued from my last posting that talked about selection of air conditioner product based on its optimal total life cycle, now I would talk about the same selection of air conditioner product but based on multi attributes.

In the case I have, I need air conditioner covering main bed room that size twenty-four meter square. Based on below rule of thumb, the required capacity is one and a half PK or twelve thousand BTU.



There are bunch of twelve thousand BTU air conditioners in market, so which one should I choose? There are many brands, many types which offer various attributes in market.

I would solve this problem using Tools and Technique discussed in Engineering Book, chapter 14: Decision Making Considering Multi Attributes”, page 551-573.

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Filed under Anggono M, Week 03

W2.1_ANG_AC Product Selection


Problem Statement

In our day to day, there are bunch of product offered by the market and we have tendency to select a product based on its cost of acquisition only. For air conditioner product, some brands come out with power inverter technology that offer low power consumption with the same capacity, but of course due to its additional equipment and market demand, the price is higher than the one without power inverter. So what we have to choose? Choose the one with power inverter? Is the tag price too high? Or is the price quite justified by the low power consumption offered?

This product selection shall consider the total life cycle of the product (air conditioner).

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Filed under Anggono M, Week 02