Answered: As a Project Engineer, you have been…

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Transcribed Image Text:As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the option to purchase a used 250MT mobile crane. The decision is in between Brand X or Brand Y 250 MT mobile crane to be used for the company's project construction activities as well as providing some rental business for three years. As the crane is not used for the whole time, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. Description Unit Brand X Brand Y No. 5 years warranty RM 2,000,000 250 MT mobile crane specification unit No warranty Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd party if no purchase is made Monthly RM 80,000 RM 80,000 Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus Per 6 inspection by Puspakom and Dept RM 3,000 RM 8,000 5. of Occupational Safety and Health (DOSH) Estimated Operator and fuel cost Disposal value at end of the project construction, 3 years months Monthly RM 15,000 RM 20,000 Unit RM 1,200,000 RM 600,000 4.

Transcribed Image Text:a) Based on Return of Investment (ROI) evaluation, which unit will you recommend to your management to be purchased and why? (CO3, PO11, C4) b) From Life Cycle Cost (LCC) Analysis, would you Brand X or Brand Y crane? What is your recommendation and why? (CO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why?- include the cashflow diagram (CO3, PO11, C4)

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