Question
ABC Sdn Bhd procured a plate heat exchanger at a cost of RM350,000. The service life of the heat exchanger is expected to be ten
ABC Sdn Bhd procured a plate heat exchanger at a cost of RM350,000. The service life of the heat exchanger is expected to be ten years. The company estimated that the operations and maintenance costs of the heat exchanger during the ten years of operations are RM900 for the first year, RM1800 for the second year, RM2000 for the third year and RM3000 for each year from the year fourth through the tenth. Using i = 15% , determine:
(a) The cash flow for the project
(b) the present equivalent expenditure, P0;
(c) the future equivalent expenditure, F10;
(d) the annual equivalent expenditure, A
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