4. Discuss the fundamentals and assumptions used in dealing with annual worth a. analysis for replacement projects. You may include examples. [6 marks] b. To improve the current operations at a Courier Service Provider's transfer facility, conveyor equipment was upgraded with hi-tech sensors at a cost of RM355,000. The operating cost is expected to be RM158,000 per year for the first 3 years and RM220,000 for the next 3 years. The salvage value of the equipment is expected to be RM150,000 only for the first 3 years. At an interest rate of 10% per year, calculate the following: i. The economic service life of the equipment and associated annual worth. [10 marks] i. The percentage increase in the AW of cost if the equipment is retained 2 years longer than the ESL (Economic Service Life). [4 marks] 4. Discuss the fundamentals and assumptions used in dealing with annual worth a. analysis for replacement projects. You may include examples. [6 marks] b. To improve the current operations at a Courier Service Provider's transfer facility, conveyor equipment was upgraded with hi-tech sensors at a cost of RM355,000. The operating cost is expected to be RM158,000 per year for the first 3 years and RM220,000 for the next 3 years. The salvage value of the equipment is expected to be RM150,000 only for the first 3 years. At an interest rate of 10% per year, calculate the following: i. The economic service life of the equipment and associated annual worth. [10 marks] i. The percentage increase in the AW of cost if the equipment is retained 2 years longer than the ESL (Economic Service Life). [4 marks]