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Q.1.1. Kowona Sdn Bhd is considering of buying a 3-axis moulding machine Acooan, for RM590000. The operating and maintenance costs will be RM65000 for the

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Q.1.1. Kowona Sdn Bhd is considering of buying a 3-axis moulding machine Acooan, for RM590000. 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 7%. Q.1.1.a. Calculate the CR of the Acooan. (4 marks) Format : 363972 Q.1.1.b. Calculate the AEC of the . (7 marks) Format : 899694 Q.1.2.a. The old moulding machine in use has a market value of RM410000. The operating and maintenance costs for the next 5 years are RM130000 per year with salvage value of RM9000. Draw the cash flow diagram and calculate the present worth of the Format : 576302 defender. Use Opportunity Costs Approach for your calculations. (9 marks) Q.1.2.b. What is the AEC for the old machine for the next 5 years ? (3 marks) Format : 749723 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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