Tag Archives: internal rate of return

W7.1_HPO_Determining The Contractor’s IRR in Production Sharing Contract


1. Problem Statement

Production Sharing Contracct (PSC) is a kind of contract between government and investor to share the production of petroleum after deduction of extraction cost. Government and contractor share the risk and result of production. How the contractror should calculate the real IRR of their investment recovery through PSC?

Continue reading

Advertisements

2 Comments

Filed under Hadianto P, Week 07

W9_HPO_Sensistivity Analysis of The PSC Contractor’s


1. Problem Statement

In this uncertain world we need to make many scenarios if some variable changes which affect to our project results. Continuing from the previous blog cases in blog 6, the actual conditions may vary and influence the economic project’s result. It could be worse or better, so we have to be ready to deal with it. What the effect if one or some variables change in our project assumptions?

Continue reading

2 Comments

Filed under Hadianto P, Week 09

W8_HPO_Accepting A Project/Contract


1. Problem Statement

Continuing from the previous Blog 6. Determining The Contractor’s IRR in PSC, now contractor must determine whether it should accept the the project/contract or not. Does contractor have to accept the project/contract? Is it economical or uneconomical to contractor?

Continue reading

2 Comments

Filed under Hadianto P, Week 08

W7_HPO_Determining the Contractor’s IRR in Production Sharing Contract


1. Problem Statement

Production Sharing Contracct (PSC) is a kind of contract between government and investor to share the production of petroleum after deduction of extraction cost. Government and contractor share the risk and result of production. How the contractror should calculate the real IRR of their investment recovery through PSC?

Continue reading

3 Comments

Filed under Hadianto P, Week 07

W4_ASY_Laundry Project


Problem Statement

This time I continue to discuss further using topic from my previous posting on week 3 now I want to talk about laundry service further in this posting. Evaluating a single project using tools as discussed in in Engineering Economy Engineering Book, chapter 5, page 178-211. Introducing concept of Minimum Attractive Rate of Return (MARR) and Inernal Rate of Return (IRR) to see whether the business investment project should go or not.
Continue reading

1 Comment

Filed under Asyhad, Week 04