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Werkcollege 1, investeren en beleggen
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Werkcollege 1 – Investeren en BeleggenQuestion 1
Hugo Joss, a company that sells luxury jackets, wants to modernize its facilities in India. The
investment needed is estimated to cost $100 mln. The output from the factory increases with
10% leading to an increase in earnings of $25 mln per year for the next 5 years. The interest
rate is set to 8% per year.
A. Calculate the NPV of this modernization project.
Today: -100.000.000
In 5 years: 125.000.000
NPV: -100.000.000 + (125.000.000/1,08) = 15.740.740,7407
The CEO of Hugo Joss managed to negotiate a lower interest rate of 6% annually by giving
some nice jackets and a box of cigars for the CFO of their bank.
B. Calculate the NPV of this modernization project with the lower interest rate.
Today: -100.000.000
In 5 years: 125.000.000
NPV: -100.000.000 + (125.000.000/1,06) = 19.724.528,3019
The Chief Sustainability Officer of Hugo Joss thinks modernizing alone is not enough. He also
wants Hugo Joss to stop dumping chemical waste from the production facility into the Ganges
and recycle it. This is estimated to cost $1 mln a year in perpetuity.
C. What is the present value of this perpetuity?
1 mln * oneindig = oneindig
Dus de present value hiervan is oneindig ???
However, there is also an opportunity to this cost. The Jackets from India can now be labeled
“Green-jackets”. The “Green-jackets” can be sold at a price premium, therefore the 5 year
revenues are estimated to increase by $5 mln per year. After the 5 years there is no more
premium.
D. Provide an advice to the CEO of Hugo Joss based on the NPV of the “Fair-jackets” project.
Hiervoor gaan we kijken naar de beslissingsregel wat betreft de NCW. Er geldt: ‘neem altijd degene
met de hoogste NWC’. Omdat bij niet investeren deze waarde 0 is en de NWC wanneer er wel
wordt geïnvesteerd (zoals hierboven berekend) hoger is dan 0 zou ik aanraden om te investeren.
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