Goal Programming Model for Capital Budgeting Investment of Lithium Accumulator Production Unit for Motorcycle

Wijayanti, Cecilia Intan; Sutopo, Wahyudi; Zakaria, Roni

doi:10.1109/icevt.2018.8628397

Cited by 1 publication

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References 15 publications

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“…Most of the issues have been lithium battery technology issues in recent years. Currently, lithium batteries are very close to people's lives, such as public street lighting, solar power plants, handy talkies, and accumulators for motorcycles (Wijayanti et al 2018). Lithium Ferro Phosphate (LiFePO4) battery is the most widespread type.…”

Section: Introductionmentioning

confidence: 99%

Feasibility Study on Improvement of Investment Lithium Batteries by Considering Depreciation and Income Tax

Proceedings of the International Conference on Industrial Engineering and Operations Management

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A lithium battery is a very lightweight battery but has better storage capacity and longer endurance than conventional batteries. Developing lithium batteries for motorcycles requires a business feasibility analysis to replace a motorcycle with lithium batteries. Lithium batteries are lightweight, environmentally friendly and safer than other types of batteries. This article is an improvement from Kurniyati et al. (2016), which discusses the feasibility of investing in the lithium battery business for motorcycles. Previous articles have not considered taxes and interest rates inflation. Therefore, improvements are needed to produce a better outcome. In this article, a feasibility analysis of investing in the lithium battery business using the NPV (Net Present Value), PP (Payback Period), IRR (Internal Rate of Return) method with a MARR value of 7.5% and a time horizon of 8 years. In addition, this article also considers the tax rate and interest rate inflation. Based on the calculations, the NPV value > 0 is IDR 198,366,208.00, the PP value is 14 years, four months longer than the eight-year time horizon, and the IRR < MARR is 12%. Therefore, investment in the lithium battery business for motorcycles is not feasible and contradicts the research of Kurniyati et al. ( 2016), which has not considered income tax and inflation interest rates. Then, all values can meet the feasibility test aspect when the initial selling price increases by 5%.

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Section: Introductionmentioning

confidence: 99%

Feasibility Study on Improvement of Investment Lithium Batteries by Considering Depreciation and Income Tax

Proceedings of the International Conference on Industrial Engineering and Operations Management

View full text Add to dashboard Cite

show abstract

Goal Programming Model for Capital Budgeting Investment of Lithium Accumulator Production Unit for Motorcycle

Cited by 1 publication

References 15 publications

Feasibility Study on Improvement of Investment Lithium Batteries by Considering Depreciation and Income Tax

Feasibility Study on Improvement of Investment Lithium Batteries by Considering Depreciation and Income Tax

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