Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

UPNM has decided to contract out their shuttle bus servicing for RM950,000 per year for 5 years. Your family business is interested to bid for

UPNM has decided to contract out their shuttle bus servicing for RM950,000 per year for 5 years. Your family business is interested to bid for the contract and asked you to prepare the tender proposal and submit it to the project funder. The project capital cost is RM1,200,000 and the operating maintenance costs are RM300,000 for year 1, RM250,000 for year 2, RM240,000 for year 3, RM270,000 in year 4 and year 5, respectively. At the end of the contract, some busses will be sold to UPNM at the minimal cost of RM450,000. Draw the cash flow diagram for this project. If the funder MARR is 13.0%, calculate the IRR and ROI. Evaluate whether should the family business company bid for the contract.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management In Organisations An Integrated Case Study Approach

Authors: Margaret Woods

2nd Edition

1138632333, 9781138632332

More Books

Students also viewed these Accounting questions

Question

Describe the roots of positive psychology.

Answered: 1 week ago

Question

What kinds of communication help sustain long-distance romances?

Answered: 1 week ago