A high speed train company is considering a project of constructing a new bullet (c) train railway from Muar to Johor Bahru. The 400 kilometer project will be started with purchasing of land from local owner and state government costing about RM26 million. Cost of construction is estimated to be RM72 million and yearly maintenance is about RM2 million. A traffic control building and sophisticated equipment should also be considered with a cost of RM4 million and RM1 million per year maintenance expenditures. Some construction equipments will be sold at the end of construction period at the market value of RM13 million. In addition, yearly speed train ticket fees wil be collected amounting to RM9 million, petrol consumptions save by the road users for RM4 million, revenues received through the direct and indirect businesses of RM5 million, and fees collected by the local and state authorities of RM3 million. The project costs breakdown is shown in Table Q4(c) Table Q4(c): Costs breakdown of high speed rail construction project Item Cost (RM) 26 mil 72 mil 2 mil 4 mil 1 mil Land purchase Cost of construction Yearly rail maintenance Building and equipment Yearly equipment maintenance Train fees Equipment scrap value Petrol consumption saving Direct and indirect business revenues Local and state fees 9 mil 13mil 4 mil 5 mil 3 mil Determine the value of Total Cost, Benefit and Disbenefit from the above (i) statement (3 marks) Apply the B-C ratio method for both conventional and modified cases using PW and AW methods with the study period of 30 years and a MARR of 20% per year (ii) Determine whether the company should proceed with the bullet train railway project. (12 marks) A high speed train company is considering a project of constructing a new bullet (c) train railway from Muar to Johor Bahru. The 400 kilometer project will be started with purchasing of land from local owner and state government costing about RM26 million. Cost of construction is estimated to be RM72 million and yearly maintenance is about RM2 million. A traffic control building and sophisticated equipment should also be considered with a cost of RM4 million and RM1 million per year maintenance expenditures. Some construction equipments will be sold at the end of construction period at the market value of RM13 million. In addition, yearly speed train ticket fees wil be collected amounting to RM9 million, petrol consumptions save by the road users for RM4 million, revenues received through the direct and indirect businesses of RM5 million, and fees collected by the local and state authorities of RM3 million. The project costs breakdown is shown in Table Q4(c) Table Q4(c): Costs breakdown of high speed rail construction project Item Cost (RM) 26 mil 72 mil 2 mil 4 mil 1 mil Land purchase Cost of construction Yearly rail maintenance Building and equipment Yearly equipment maintenance Train fees Equipment scrap value Petrol consumption saving Direct and indirect business revenues Local and state fees 9 mil 13mil 4 mil 5 mil 3 mil Determine the value of Total Cost, Benefit and Disbenefit from the above (i) statement (3 marks) Apply the B-C ratio method for both conventional and modified cases using PW and AW methods with the study period of 30 years and a MARR of 20% per year (ii) Determine whether the company should proceed with the bullet train railway project. (12 marks)