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Case 9
Case 9
-Case 9-
“Primus Automation Division”
Syndicate 3
Tiwi Movita 29117004
M Hayckal 29117006
M Khairian 29117094
Lazuardy K Sadewa 29117149
Riska Setiawati 29117254
Primus Automation Division
An innovative producer of world-class factory-
automation products and services, with
operations in the United States, Europe and Asia.
Loan (“Buy-and-Borrow”)
5-year term loan
Payment in arrears
Both Methods
$647.839
D $675.660
$645.255
$685.330
C $714.762
$682.598
$459.346
B $479.073 Honshu
$457.515
Faulhaber
Scenario
13,48%
D 11,42%
10,91%
13,48%
C 11,42%
10,91%
8,64% Honshu
B 7,13%
Faulhaber
6,72%
Primus OP.3
8,64%
A 7,13%
6,72%
CONCLUSION
ØTo analyze those leasing option and scenario, the NPV and IRR result are the
indicators of the decision making for Primus Customers.
ØIn perspectives of customers, the lower the NPV is more preferable for the
customers since it indicate the cheapest alternatives.
ØIRR also represent the effective cost of the lease financing, the lower IRR
than after tax cost of debt.
ØLooking up these 2 indicators, Option 3 is the right option for Primus to
offering the leasing proposal to Avanjet and their future customers.