(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.

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Chapter2: Building Blocks Of Managerial Accounting
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(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 49,000 +
RM 28,000
+ (1000 x L3D)
Capital Investment
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
RM 400/yr
thereafter
and increasing RM
350/yr thereafter
year
Useful life (years)
Market Value (Disposal
Cost)
8.
RM 10,000
RM 20,000
RM 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.
Transcribed Image Text:(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 49,000 + RM 28,000 + (1000 x L3D) Capital Investment 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 RM 400/yr thereafter and increasing RM 350/yr thereafter year Useful life (years) Market Value (Disposal Cost) 8. RM 10,000 RM 20,000 RM 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.
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