Please help to answer question 2a

2. Equipment and machinery deteriorates with the passage of time. Ageing equipment often has a higher risk of breakdowns and tends to lose its ability to produce a desired output or benefit. (a) When a company conducts an engineering economic analysis to compare the existing asset (defender) against the best available replacement asset (challenger), it is performing a process called replacement analysis (RA). As the maintenance manager in your company, describe the FIVE reasons which causes the the machinery to be retired or replaced. (10) (b) The cash flow series either increase or decrease uniformly. The amount of increase or decrease is called the Gradient. Calculate the present value (PV) for the problems below: i. The present worth of RM500 in year 1 with amount increasing by RM20 per year to year 6. The interest rate is 10% per year. ii. Mr. Ahmad annual deposits into bank account that pays 12% interest. The initial deposit of the first year is RM800. The deposits amount decline by RM200 in the next three years. ( 10 )