Question
(b) A printing machine was purchased at a price of RM 5,000. That machine was used for 5 years to provide printing services to the
(b) A printing machine was purchased at a price of RM 5,000. That machine was used for 5 years to provide printing services to the students and the yearly income was RM 2,500. The maintenance cost of the printing machine was RM 500 for a year. At the end of 5th year, the printing machine depreciated value is RM 1,000 and under consideration for disposal. Assume the interest rate is i =10% per annum.
(i) Sketch the cash flow diagram for the disposal project.
(ii) Determine the future equivalent income (F) for this project.
(iii) Evaluate whether it is worth to undertake this project.
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