1. Unlike standard life cycle cost analysis, the Estimated Uniform Annual Cost (EUAC) method expresses life cycle costs as an annualized estimate of cash flow instead of a lumpsum estimate of present value. (a) Calculate the equivalent uniform annual cost (EUAC) of a tractor if given the initial operating cost of RM 150,000 and will generates a revenue of RM20,000 per year. The operation of the tractor will cost around RM5000 per year and at the end of 10 years, this tractor is to be scrapped. Given 10% interest rate per year. ( 10 ) An investment of RM 10,000 can be made that will produce a uniform annual of RM5500 for 5 years and then have a market (salvage) value of RM 2000. Annual expenses will be RM3150 each year. The company is willing to accept any project that will earn 10% per year or more, on all invested capital. Show whether this is desirable investment by using the future worth method. (b) ( 10 )