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Engineering Economics. Please help me. i have 30 mins. (b) AEXTRO Berhad, a leading television cable company is considering installing a new digital compression technology

Engineering Economics. Please help me. i have 30 mins. image text in transcribed
(b) AEXTRO Berhad, a leading television cable company is considering installing a new digital compression technology to increase subscription sales and save on satellite time. The company estimates that the installation of the new technology will take place over two years of investment period which is then followed by 8 years service life (a total of 10 years project life). The savings and expenditures of installing the new digital compression technology are as follows: SAVINGS/ EXPENDITURES (RM) 500,000 3,200,000 4,000,000 2,000,000 Investment : Now First year Second year Annual savings in satellite time Incremental annual revenues due to new subscriptions Incremental annual maintenance & other expenses 4,000,000 1,500,000 Salvage value 1,200,000 Given that AEXTRO Berhad's MARR is 18%, calculate the economic worth of the project based on the Net Present Worth (NPW) method. Should the company proceed with the project? 18 marks

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