Question Ref. No: $3518$

You are considering investing RM$61000$ in new equipment. You estimate that the net cash flows will be RM$15000$ during the first year, but will increase by RM$2500$ per year the next year and each year thereafter. The equipment is estimated to have a $8-$year service life and a net salvage value of RM$5100$ at that time. Assume MARR of $11\%.$

a$.$ Calculate the annual capital cost CR $($ownership cost$)$ for the equipment. $$ Format: $98344$

b$.$ Determine the equivalent annual revenue.

Format: $39494$

c$.$Is this a wise investment? Y$/$N$.$

Format: A

Score: $\frac{0}{3}$