Unlike standard life cycle cost analysis, the Estimated Uniform Annual Cost (EUAC) method expresses life cycle costs as an annualized estimate of cash flow instead of a lumpsum estimate of present value. (a) An existing machine in a factory has an annual maintenance cost of RM 40,000. A new and more efficient machine will require an investment of RM 90,000 and is estimated to have a salvage value of RM 30,000 at the end of 8 years. Its annual expenses for maintenance and upkeep, etc. overall total is RM 22,000. If the company expects to earn 12% on its investment, will it be worthwhile to purchase the new machine? (b) A construction company plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates as in Table 1 below. Determine which company should be selected on the basis of present worth comparison, if the MARR is 15% per year. Table 1 / Jadual 1 (Total / Jumlah: 20 )