Q.1.1. Kowona Sdn Bhd is considering of buying a 3-axis moulding machine Acooan, for RM580000. The operating and maintenance costs will be RM65000 for the first year and that they will increase by RM13000 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 Acooan. (4 marks)	Format : 394556
Q.1.1.b. Calculate the AEC of the . (7 marks)	Format : 569725
Q.1.2.a. The old moulding machine in use has a market value of RM350000. The operating and maintenance costs for the next 5 years are RM190000 per year with salvage value of RM16000. Draw the cash flow diagram and calculate the present worth of the defender. Use Opportunity Costs Approach for your calculations. (9 marks).	Format : 8444688
Q.1.2.b. What is the AEC for the old machine for the next 5 years ? (3 marks)	Format : 950727
Q.1.2.c. Should you replace now? Why? Write your reason in the workings to be submitted. (2 marks)	Format : xxx