(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.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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