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hello, can solve this in complete explain answer Q3 Ammar deposits RM 500 per month into a savings account for 3 years. Within those 3
hello, can solve this in complete explain answer
Q3 Ammar deposits RM 500 per month into a savings account for 3 years. Within those 3 years, from yearly bonus, he adds another deposit RM 1000 at the end year 1, 2 and 3. Ammar also need to withdraw RM 200 in months 5, and another RM 300 in months 10 and 11 because emergency reason (in addition to the deposits). The savings accounts give rate of return at, i = 12% per year, compounded quarterly. Assume there is no interperiod interest. (a) Analyse the above scenario include analysis;- (1) Cash flow diagram (5 marks) (ii) Net Present Value in the account after 3 years; (5 marks) (b) FKP Sdn Bhd is considering using new design of impeller in centrifugal pump produced by the company. The impeller can be made by two different methods. Method A will have a first cost RM 30 000, an operating cost of RM8 000 per year, and a RM 4 000 salvage value after 4 years. Method B will have a first cost of RM 50 000, an operating cost of RM 4 000 in year 1, increasing by RM 500 per year through year 6, after which time it will have a salvage value of RM 10 000 You as an engineer in this company need to make evaluation for the company which method to be selected. (Use interest rate of 10% per year). (10 marks) Q3 Ammar deposits RM 500 per month into a savings account for 3 years. Within those 3 years, from yearly bonus, he adds another deposit RM 1000 at the end year 1, 2 and 3. Ammar also need to withdraw RM 200 in months 5, and another RM 300 in months 10 and 11 because emergency reason (in addition to the deposits). The savings accounts give rate of return at, i = 12% per year, compounded quarterly. Assume there is no interperiod interest. (a) Analyse the above scenario include analysis;- (1) Cash flow diagram (5 marks) (ii) Net Present Value in the account after 3 years; (5 marks) (b) FKP Sdn Bhd is considering using new design of impeller in centrifugal pump produced by the company. The impeller can be made by two different methods. Method A will have a first cost RM 30 000, an operating cost of RM8 000 per year, and a RM 4 000 salvage value after 4 years. Method B will have a first cost of RM 50 000, an operating cost of RM 4 000 in year 1, increasing by RM 500 per year through year 6, after which time it will have a salvage value of RM 10 000 You as an engineer in this company need to make evaluation for the company which method to be selected. (Use interest rate of 10% per year). (10 marks)Step by Step Solution
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