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Answer for this 2 question A manufacturing company is evaluating two alternatives; the purchase of machine A and machine B for a printing process. Machine
Answer for this 2 question
A manufacturing company is evaluating two alternatives; the purchase of machine A and machine B for a printing process. Machine A have a first costs RM250,000, has annual maintenance costs of RM20,000 start at year 2, and a useful service life of 5 years with an estimated salvage value of RM50,000. The machine B, will have a first cost of RM100,000, an annual maintenance costs of RM8,000 at year 2 and increase RM2,300 every year, and a useful service life of 5 years with an estimated salvage value of RM25,000. Two labor required to operate the machine A and three labors for machine B. The salary for each labor is RM 1200 per month. Recommend to the company whether to purchase machine A or machine B with expected rate of return of 19 % per year. Q2 (a) Annual Labor Cost for Packaging System was RM 50,000 in year 1 through 3 and RM70,000 in year 4 through 8. Determine the present worth at an interest rate of 3.2 % per year. (20 marks) Q2 (b) Table 1 shows deposit into saving account with rate of return 10% per year. Determine the future value at year 8. (25 marks) Table 1: Deposit Money into Saving Account Information Year 0 1 2 3 4 5 Deposit, RM per year 500 4,000 4,000 3,600 3.200 2,800 6 2,400Step by Step Solution
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