(b)AVILA Construction Sdn Bhd plans to buy a new truck crane. There are THREE (3)alternative brands to be evaluated in terms of cost estimation as shown in TableQ1(b). Given the MARR is 18% per annum. Noted that L3D represents the LastThree Digit of student matric number.L3D=1Table Q1(b): Manufacturers, lives and costs of three lined slurry pumpCOST ITEMSSANISANESANURM 49,000 +RM 28,000+ (1000 x L3D)Capital InvestmentRM 84,000+ (1000 x L3D)(1000 x L3D)Annual Expenses:MaintenanceRM 1,500 per RM 1,000 in year RM 2,000 in year 1,1, and increasingRM 400/yrthereafterand increasing RM350/yr thereafteryearUseful life (years)Market Value (DisposalCost)8.RM 10,000RM 20,000RM 10,000(i)Draw cash-flow diagram for each machine.(ii)Apply the private project evaluation method to compare the annual worth,AW for each machine.

Answered: Image /qna-images/answer/a7276a87-52e2-41ff-8298-b3775872f4f6.jpg

(b) AVILA Construction Sdn Bhd plans to buy a new truck crane. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table Q1(b). Given the MARR is 18% per annum. Noted that L3D represents the Last Three Digit of student matric number. L3D=1 Table Q1(b): Manufacturers, lives and costs of three lined slurry pump COST ITEMS SANI SANE SANU RM 28,000 + (1000 x L3D) Capital Investment RM 49,000 + RM 84,000 (1000 x L3D) + (1000 x L3D) Annual Expenses: Maintenance RM 1,500 per RM 1,000 in year RM 2,000 in year 1, 1, and increasing and increasing RM RM 400/yr thereafter year 350/yr thereafter Useful life (years) (Disposal 6 8. 4 Market Va RM 10,000 RM 20,000 RM 10,000 Cost) (i) Draw cash-flow diagram for each machine. (ii) Apply the private project evaluation method to compare the annual worth, AW for each machine.

(b) AVILA Construction Sdn Bhd plans to buy a new truck crane. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table Q1(b). Given the MARR is 18% per annum. Noted that L3D represents the Last Three Digit of student matric number. L3D=1 Table Q1(b): Manufacturers, lives and costs of three lined slurry pump COST ITEMS SANI SANE SANU RM 28,000 + (1000 x L3D) Capital Investment RM 49,000 + RM 84,000 (1000 x L3D) + (1000 x L3D) Annual Expenses: Maintenance RM 1,500 per RM 1,000 in year RM 2,000 in year 1, 1, and increasing and increasing RM RM 400/yr thereafter year 350/yr thereafter Useful life (years) (Disposal 6 8. 4 Market Va RM 10,000 RM 20,000 RM 10,000 Cost) (i) Draw cash-flow diagram for each machine. (ii) Apply the private project evaluation method to compare the annual worth, AW for each machine.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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