2) MINI CASE CREDIT POLICY at BRAAM INDUSTRIES

120.000.000
 Average daily sales: 365
= 328.767,12

120.000.000
 Average variable cost: 45% X ( 365
) = 147.945,20

120.000.000
 Average daily default: 1,5% X ( ) = 4.931,51
365

120.000.000
 Average daily administration cost: 2,1% X ( 365
) = 6.904,11

 Interest rate:

 NPV :
328.767,12−147.945,20− 4.931,51−6.904,11
NPV= -147.945.20 + ( )
0,00627

= $ 35.416.057,99

OPTION 1
140.000.000
 Average daily sales: 365
= 383.561,64

140.000.000
 Average variable cost: 45% X ( 365
) = 172.602,74

140.000.000
 Average daily default: 2.4% X ( 365
) = 9.205,48

140.000.000
 Average daily administration cost: 3,1% X ( 365
) = 11.890,41

6% 41
 Interest rate: R = [(1 + ) ] – 1 = 0,00676
365

 NPV :

383.561,64−172.602,74−9.205,48−11.890,41
NPV= -172.602,74+ ( 0,00676
)

= $ 27.913.641,34
 OPTION 2
137.000.000
 Average daily sales: 365
= 375.342,47

137.000.000
 Average variable cost: 45% X ( 365
) = 168.904,11

140.000.000
 Average daily default: 1.7% X ( ) = 6.380,82
365

140.000.000
 Average daily administration cost: 2.3% X ( 365
) = 8.632.88

6% 51
 Interest rate: R = [(1 + ) ] – 1 = 0,00842
365

 NPV :

375342.47−168.904,11−6.380,82− 8.632.88
NPV= -168.904.11+ ( 0,00842
)

= $ 22565616,08

OPTION 3

150.000.000
 Average daily sales: 365
= 410.958,90

150.000.000
 Average variable cost: 45% X ( 365
) = 184.931,51

150.000.000
 Average daily default: 2.1% X ( 365
) = 8630,14

140.000.000
 Average daily administration cost: 2.3% X ( 365
) = 8.632.88

6%
 Interest rate: R = [(1 + 365 )49] – 1 = 0,00809

 NPV :

410.958,90−184.931,51−8630,14−8.632.88
NPV= -184.931,51+ ( 0,00809
)

= $ 25620305,82
 Annual Default Rate Adm Receivable NPV

Sales Cost Period

Current $120 1.5% 2.1% 38 days 35.416.057,99

Option 1 140 2.4 3.1 41 27.913.641,34

Option 2 137 1.7 2.3 51 22565616,08

Option 3 150 2.1 2.9 49 25620305,82

Opsi yang harusnya dipilih adalah opsi nomer 1 karena lebih besar daripada opsi

yang lain yaitu sebesar 35416057,99 pada receivable period 38 day. Untuk opsi

ke dua tidak masuk akal karena justru akan berkurang dan opsi ketiga hanya

selisih sedikit dari opsi 2.