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Q4 Cuci Kereta Sdn Bhd is evaluating two alternatives: the purchase of an automatic washing system or a semi-automatic washing system. One person will
Q4 Cuci Kereta Sdn Bhd is evaluating two alternatives: the purchase of an automatic washing system or a semi-automatic washing system. One person will operate the automatic washing machine. On the other hand, the semi-automatic washing system require two workers to operate the system. Table 4 shows the system information. The company estimate 3,000 cars can be washed per year with expected rate of return of 10% per year Evaluate this option with suitable graph for recommendation to the company whether to purchase an automatic or a semi-automatic washing system. Table 4: System Information (25 marks) Automatic Washing System Semi-automatic Washing System First Cost (RM) 110,000 20,000 Salvage 25,000 3,000 (RM) Life 10 5 (years) Labour Cost 10 10 (RM per hour per person) Wash Car 12 5 (units per hour) Maintenance Cost (RM per year) 4,000 for first year and increase 2,000 every year 1,500
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