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The State government has purchased 2 0 0 bicycles to replace the current Link Bikes. In addition, they have also purchased a total of 5
The State government has purchased bicycles to replace the current Link Bikes. In
addition, they have also purchased a total of Escooters to be placed in Gurney Bay,
Straits Quay Promenade, and Queens Waterfront Promenade. The purchase cost of
bicycles is RM and Escooters is RM The cost of maintenance of the
bicycles is RM in the first year, RM in the second year and RM in the
third year. The cost of maintenance of the Escooters is RM in the first year,
RM in the second year, and RM in the third year. The benefits of bicycles are
RM in the first year and RM in the second and third years. On the other
hand, the Escooters' estimated benefit is RM in the first year and RM in the
second and third years. At the end of the third year, the bicycles and Escooters can be resold
as secondhand for a total of RM and RM Assume a discount rate of is
used.
a Calculate the present value of net benefits assuming the benefits are realized at the end
of each of the three years. Also, draw the timeline of benefits and costs.
marks
b Calculate the present value of net benefits assuming that the benefits are realized at the
beginning of each of the three years. Also, draw the timeline of benefits and costs.
marks
c Calculate the present value of net benefits assuming that of the benefits are realized
at the beginning of the year and the balance at the end of the year.
markshelp
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