Category Archives: Lita

All Blogs Time line for user Lita

W13_LL_Leverage through External Financing


1) Problem definition The Geothermal Project is currently being evaluated. Geothermal Project cycle is almost the same as Oil and Gas Project. It has an exploration, development and commercial phases. Usually it takes 4-5 years before the project is commercial. … Continue reading

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W12_LL_PostMortem_M&A Project


1) Problem definition The company acquired an asset in 2009 with acquisition cost of US$316.5 Million. Until now, the performance review of the acquired asset has not been conducted yet. It is a requirement to do the post mortem evaluation … Continue reading

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W11_LL_Portfolio Modelling


1) Problem definition The company has many projects which been approved and operated. Those projects include projects in exploration and production area. Each of those projects has been calculated on its return (NPV, IRR, PI) however, the results have not … Continue reading

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W10_LL_Probabilistic & DecisionTree


1) Problem definition The company is evaluating a new prospect in South Sumatra. This new prospect will be evaluated using the exploration economics which will use a decision tree with the probabilities of each outcome. The company needs to find … Continue reading

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W9_LL_Risk Analysis


1) Problem definition The company has done economic evaluation for a fuel terminal project in western Indonesia. With total investment of U$103 Million which will be spent in 5 years (2013-2017) and the economics life of 20 years. The economic result shows that … Continue reading

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W8_LL_Regression Analysis_Beta Stock Calculation


1) Problem definition By using regression analysis, beta of a stock can be calculated. Beta is a systematic risk (risk associated with market portfolio). CAPM Model calculates the expected return by using the Beta. Is the expected return with CAPM … Continue reading

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W7_LL_WACC&MARR_Gold or Crude Price as Risk Free


1) Problem definition In capital budgeting, the stakeholder of company can choose to invest the extra cash to the risk free financial instrument or to invest in a project with has higher return than risk free instrument. To have good … Continue reading

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