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Q.1.1. Dokdiam Sdn Bhd is contemplating of buying a new heating machine Panaskan, for RM480000. The operating and maintenance costs will be RM65000 for
Q.1.1. Dokdiam Sdn Bhd is contemplating of buying a new heating machine Panaskan, for RM480000. The operating and maintenance costs will be RM65000 for the first year and that they will increase by RM14000 per year. The estimated salvage value at the end of 5th year is RM150000. MARR of the company is 6%. Q.1.1.a. Calculate the CR of the Panaskan. (4 marks) Format : 606648 Q.1.1.b. Calculate the AEC of the. (7 marks) Format : 258346 Q.1.2.a. The current heating machine in use has a market value of RM410000. The operating and maintenance costs for the next 5 years are RM140000 per year with salvage value of RM19000. Draw the cash flow diagram and calculate the present worth of the defender. Use Opportunity Costs Approach for your calculations. (9 marks). Format : 946747 Q.1.2.b. What is the AEC for the old heating machine for the next 5 years ? (3 marks) Format : 777756 Q.1.2.c. Should you replace now? Why? Write your reason in the workings to be submitted. (2 marks) Format : XXX
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