EEEB253/EPPB2024, Interim Semester, 2020/2021 QUESTION 130 MARKSI (a) What is the difference between mutually exclusive alternatives and independent projects? (3 Marks (b) AZ Engineering Services is currently looking into a possibility to use in-space fiicl cell systems that are hydrogenand methanol-based. Three mutually exclusive machines are under consideration and they are all comparable in term of service. As the Head Engineer for the company, you are responsible to suggest to the management the option that the company should choose using MARR 8%. Information related to those three machines as follows. Electric- Gas- Solar- Powered Powered Powered Outlay (RM) 415,000 600,000 360,000 Annual operating cost/year (RM) 88,000 25,000 68,000 Salvage value (RM) 20,000 18,000 35,000 Service Life (years) 10 10 10 (i) Using Net Present Worth method, determine and justify which option the management should choose. Show all your workings. [9 Marks] (ii) Using Net Future Worth method, determine and justify which option the management should choose. Show all your workings. [9 Marks (iii) Using Annual Worth Method, determine and justify which option the management should choose. Show all your workings. [9 marks) Page 2 of 5