HYBRID AND DERIVATIVE SECURITIES

Nama : Radinne Fakhri

Nim : 022001901270

- Firm A
After tax cash outflow = Lease payment x ( 1 - Tax)
= 65,000 x ( 1 - 0.40)
= 39,000

- Firm B
After tax cash outflow = Lease payment x ( 1 - Tax)
= 72,000 x ( 1 - 0.40)
= 43,200

- Firm C
After tax cash outflow = Lease payment x ( 1 - Tax)
= 100,000 x ( 1 - 0.40)
= 60,000

- Firm D
After tax cash outflow = Lease payment x ( 1 - Tax)
= 43,000 x ( 1 - 0.40)
= 25,800
 - Firm E
After tax cash outflow = Lease payment x ( 1 - Tax)
= 250,000 x ( 1 - 0.40)
= 15,000

a. STEP 1: LEASING (AFTER-TAX COF)

Rumus: After-Tax COF = Lease Payment x (1 – Tax)

Year 1 & 2 (After-Tax COF) = $ 25,200 x (1 – 0,21 ) = 19,908

Year 3 (Final After-Tax COF) = $ 19,908 + $ 5,000 = $ 24,908

STEP 2: PURCHASING (AFTER-TAX COF)

(PV x r )
Loan Payment = CF = (1− 1 )
(1+ r)n
($ 60,000 x 0,14)
= (1− 1 )
(1+0,14 )3
= $ 25,843,89 ⇾ $ 25,844
Note: Interest in Year 2 & 3 dibulatkan penuh. Tidak perlu pakai desimal.
 TABLE OF AMORTIZATION
rd x (1) (1) – (4)
Loan Payment (2) – (3)
Year Beginning Interest⇾14% End-of-Year
(2) Principal (4)
(3) Principal (5)
1 $ 60.000 25,844 8,400 17,444 42,556

2 42,556 25,844 5,958 19,886 22,670

3 22,670 25,844 3,174 22,670 0

TABLE OF AFTER-TAX COF
(2) + (3) + (4) (5) x Tax (1) + (2) – (6)
Loan Maintenance Depreciation
Year Interest (4) Total Deduction Tax Shield After-Tax
Payment (1) Cost (2) Cost (3)
(5) (6) COF (7)

1 25,844 1.800 19,800 8,400 30,000 6,300 21,344

2 25,844 1.800 27,000 5,958 34,758 7,299 20,345

3 25,844 1.800 9,000 3,174 13,974 2,935 24,709

Note:
 Depreciation Cost = % MACRS (3 years-recovery period⇾33%, 45%, 15%, 7%) per
Year x Cost
 Tax Shield in Year 2 & 3 dibulatkan penuh. Tidak perlu pakai desimal.
 b. Step 3: TOTAL PV OF COF

LEASING
After-Tax COF
Year PVIF (1) PV of COF (3)
(2)

1 0,9259 19,908 18,433

2 0,8573 19,908 17,067

3 0,7398 24,908 19,772

Total PV of COF (Leasing) $ 55,272

PURCHASING
Year PVIF (1) After-Tax COF (2) PV of COF (3)

1 0,9259 21,344 19,762

2 0,8573 20,345 17,442

3 0,7398 24,709 18,280

Total PV of COF (Purchasing) $ 55,484

1
Note : PVIF=
(1+cost of debt)n

PV of COF = PVIF x After - Tax COF

c. Sebaiknya, alternative yang dipilih adalah LEASING. Karena, present value of

leasing lebih kecil dibandingkan present value of purchasing $55,272 < $55,484