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TS Global Network company are increasing its booster thrust power to win more mini satellite launch contracts from USA companies. A piece of earth-based tracking
TS Global Network company are increasing its booster thrust power to win more mini satellite launch contracts from USA companies. A piece of earth-based tracking equipment is expected to require an investment of RM320,000.00 and will result in a profit of RM22,000.00 annually. Research contribution attribute will amount one-off grant saving RM100,000.00 in year 5. The equipment requires a minor service overhaul annually that cost RM5,000.00 per year. At year eleventh, a major overhaul costing RM25, 000.00 will be required. This equipment will have a salvage value of RM60,000.00 at the end of year 20 and the MARR = 5%. Answer the following questions: i. Analyse the Annual Worth of this proposal. Show the cash flow diagram. (5 marks) ii. Justify the acceptability of this proposal. (2 marks)
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