Tag Archives: Time Value of Money

W6.1_HPO_Determing The Asset’s Economic Life


1. Problem Statement

We plan to buy a new medium FPSO which costs estimated around US$ 50,000,000. Initially, we don’t have any clue for how long this new asset FPSO to give positive economic value. In finding the economic life of this asset, we will know when should we have to retire the asset. So the problem is how long the economic life of this new FPSO?

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Filed under Hadianto P, Week 06

W5_HPO_Decision Tree for House Acquisition Scenario


1. Problem Statement

Currently, Indonesia is suffering a financial instability caused by the tapering issue of US quantitative easing and fundamental deficit of balance of payment. In this uncertain financial condition, inflation affecting the economic growth by giving bigger chance of interest increase. What the best scenario should I have to buy a house if some risk probability affecting the future assets value?

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Filed under Hadianto P, Week 05