INVESTMENT ANALYSIS IN A MEDICAL EQUIPMENT DISTRIBUTOR (A CASE IN PT LA)

• Main Author: Bunyamin, Yayan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/52957
• Institution: Institut Teknologi Bandung

PT LA is a company engaged in the distribution of medical laboratory equipment. PT LA made a contract operasional cooperation for the use of medical laboratory equipment with several class-A hospital laboratories, class-B hospital laboratories, and several non-hospital laboratories in Bandung. Cooperation is carried out for 5 years. In 2017 PT LA began to make a cooperation contract with the ABC hospital laboratory which is a class-A hospital. The cooperation contract will expire in 2022. At the end of the cooperation period, PT LA will have used medical laboratory equipment with a fairly large book value, and still have an economic life cycle of one year. To keep the value of the equipment high, PT LA must be able to immediately sell the used equipment within the economic period of the equipment. However, the high price of used equipment makes it difficult for PT LA to find buyers according to the desired price. At the same time, PT LA will need fresh funds for the purchase of new equipment in preparation for an extension of the project at ABC Hospital laboratory. If it is not taken into account in advance, PT LA will face financing difficulties to maintain cooperation opportunities at ABC Hospital laboratory. To deal with this business issue, PT LA has several options for research, namely: 1. Exchange of used equipment with new equipment for the extension of cooperation at ABC Hospital. 2. Recondition of used equipment with a contract target at CDE hospital laboratory which is a class B hospital. 3. Selling the used medical equipment to interested companies below its book value. The purpose of this case study is to examine which option is the best for companies in optimizing the book value of used equipment to reduce the initial investment of projects to be undertaken. Investment analysis is carried out to calculate, Net Present Value (NPV), Internal Rate of return (IRR), Payback Period (PBP), and the Profitability Index) PI. The results showed that the trade-in option provided the most feasible project value for the company. The results obtained: Net Present Value (NPV) = Rp. 3,434,644,981, Internal Rate of Return (IRR) = 20.76%, Payback Period (PBP) = 4.27 years and Profitability Index (PI) = 1.29. The results showed that the NPV> 0, IRR> cost of capital was 11.10%. The Payback Period (PBP) method shows that the return on investment is faster than the economic period of the asset (PBP <6 years) and the Profitability Index (PI) has a value of> 1. Sensitivity analysis was conducted to determine which variable was the most sensitive to the results of the study. The results of the analysis show that the initial investment capital is the most sensitive variable. The conclusion of the research results shows that the investment plan with trade-in options makes the value of the lab equipment is higher than its book value so that it has a large enough impact to reduce the capital to purchase new equipment for operational cooperation project at ABC Hospital laboratory.