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(b) SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3) alternative brands to be evaluated in terms

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(b) SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table 1. Given the MARR is 10% per annum. Noted that L3D represents the Last Three Digit of student matric number. Table Q1(b): Palm oil truck ALIB 67,000+ TITAN Capital Investment 58,000 + CIMC 61,000+ (RM) (100 x L3D) (100 x L3D) (100 x L3D) Annual maintenance 3,000 2,000 1,000 (RM) Useful life (years) 5 10 10 Market Value (RM) (Disposal Cost) 30,000 15,000 17,000 (i) Draw cash-flow diagram for each truck. (ii) Apply the private project evaluation method to compare the annual worth (AW) for each truck. (iii) Justify which brand should be selected.

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