Professional Documents
Culture Documents
AUTOMATION
SYN D I CATE 2
SYN D I CATE 2
DIVISION
- 29115684
Raditya Dwi A
- 29115690
Randy
- 29115685
Nadya Rizkita
- 29115630
Wulan C. Lestari
- 29115628
Rais Kandar
- 29115663
M Iqbal F Syamlan
- 29115539
INTRODUCTION
01
PRIMUS
AUTOMATION DIVISION
FINANCIAL
ENVIRONMENT
uSlower economic growth
uIncreased in market share
competition
uWeakened USD leading to
resurgence in US
manufacturing
PRIMUS
OBJECTIVES
uMaintain leadership in market
share
uIncrease sales by 15% per year
uAchieves targets for net
income and working capital
turnover
PRIMUS
STRATEGY
uResponsive customer service
uStrong share position in high
volume-growing segments
uOffering leading technologies
based on industry standards
AVANTJET
Avantjet is an aircraft manufacturer.
AVANTJET
Struggling through economic
recession
uCapital Intensive
uCEO ordered moratorium on
capital intensive projects that may
negatively affect balance sheet
uWant an automation machine that
will cut costs and accelerate the
production line
AVANTJET
OPTION
>> B O R R O W
LEASE
>> Acquire through
conditional sale
AVANTJET
FINANCIALCONDITIO
CAPITAL LEASE
-
-
-
-
-
OPERATING LEASE
PRIMUS
COMPETITION
FAULHABER GMBH
Purchase Price
$759,000
M E A N W H I L E
PRIMUS
OFFER IS
M E A N W H I L E
PRIMUS
OFFER IS
Purchase Price
$715,000
Primus is inexperienced with leasing
THUS
Annual Leasing and Residual Value are yet quoted
PRIMUS
LEASING CONDITIONS
u An operating lease keeps the
equipment off of Avantjets balance
sheet which will likely be the only way
they accept the lease.
u Primus must remain competitive with
the offers of other firms in Avantjet
eyes.
u Leasing terms must leave Primus with
an NPV higher than the asset they
lending
LEASING
OPTIONS
CALCULATION
02
LEASING
VS
BORROW
OBSERVATIONS
OBSERVATIONS
At option #2 - Scenario A
There are no lease
advantage
Meaning leasing is equal
to buy & borrow
OBSERVATIONS
PRIMUS
VS
COMPETITOR
OBSERVATIONS
OBSERVATIONS
Faulhaber
is the main competitors
RECOMMENDATION
03
FAULHABER
RECOMMENDATION
#1
E N D