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Exercise1 CV Sdn Bhd is an engineering solution provider needs a rapid prototyping machine. As an Engineer at CV Sdn Bhd, you were given two
Exercise1 CV Sdn Bhd is an engineering solution provider needs a rapid prototyping machine. As an Engineer at CV Sdn Bhd, you were given two (2) options. Assume that you will be able to take in RM8,000 per year in income from this machine. Also assume that an additional option is not to buy the machine at all, but to put the money in the bank at 5% interest, which option is the best for the CV Sdn Bhd? a. Option 1, you purchase the machine for RM50,000, pay a maintenance contract of RM1,000 per year, and expect to be able to resell the machine after 10 years at a salvage value of RM10,000 14 marks b. In Option 2, you lease the machine at RM7,000 per year and pay no maintenance, but receive no salvage. 6 marks
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