Research Article
Investment Analysis for Replacement Premium Economy Trains into Executive Trains of Argo Parahyangan A Case Study of PT Kereta Api Indonesia (Persero)
@INPROCEEDINGS{10.4108/eai.30-7-2019.2287761, author={R Irwanto and A H Anggono}, title={Investment Analysis for Replacement Premium Economy Trains into Executive Trains of Argo Parahyangan A Case Study of PT Kereta Api Indonesia (Persero)}, proceedings={Proceedings of the 1st Asian Conference on Humanities, Industry, and Technology for Society, ACHITS 2019, 30-31 July 2019, Surabaya, Indonesia}, publisher={EAI}, proceedings_a={ACHITS}, year={2019}, month={9}, keywords={investment analysis replacement project financial feasibility incremental cash flow}, doi={10.4108/eai.30-7-2019.2287761} }- R Irwanto
A H Anggono
Year: 2019
Investment Analysis for Replacement Premium Economy Trains into Executive Trains of Argo Parahyangan A Case Study of PT Kereta Api Indonesia (Persero)
ACHITS
EAI
DOI: 10.4108/eai.30-7-2019.2287761
Abstract
This research will explore the financial feasibility of the investment plan for replacing the premium economy train into an executive train. Financial feasibility analysis is carried out by several methods such as incremental cash flow projection, financial feasibility based on the free cash flow to the project, financial feasibility based on free cash flow to equity and sensitivity analysis. Based on free cash flow to the project, the NPV is IDR 225 Billion the IRR is 45.27% (greater than WACC = 17.32%), and the payback period is 3.13 years. On the other hand, based on free cash flow to equity, the NPV is IDR 66 Billion the IRR is 85.15% (higher than the cost of equity = 36.72%), and the payback period is 1.94 years. So that from the results of the analysis, it can be obtained that the premium economy train replacement project becomes an executive train for Argo Parahyangan financially feasible.