W Q3 A manufacturing company is evaluating two alternatives; the purchase of an automatic painting machine and a manual painting machine for car body parts painting process. Automatic painting machine which costs RM220,000, has annual maintenance costs of RM13,000 start at year 3, and a useful service life of 6 years with an estimated salvage value of RM50,000. The manual painting machine, will have a first cost of RM70,000, an annual maintenance costs of RM3,500 at year 2 and increase RM1,500 every year, and a useful service life of 6 years with an estimated salvage value of RM12,000. One labor required to operate the automatic painting machine and three (3) labors for manual painting machine. The salary for each labor is RM 1400 per month. Recommend to the company whether to purchase an automatic or a manual painting machine with expected rate of return of 10% per year. (Include all calculations in terms of tabulated forms of cash flow, cash flow diagram, and calculation of Present Worth Analysis or Future Worth Analysis.)

3 A manufacturing company is evaluating two alternatives; the purchase of an automatic painting machine and a manual painting machine for car body parts painting process. Automatic painting machine which costs RM220,000, has annual maintenance costs of RM13,000 start at year 3, and a useful service life of 6 years with an estimated salvage value of RM50,000. The manual painting machine, will have a first cost of RM70,000, an annual maintenance costs of RM3,500 at year 2 and increase RM1,500 every year, and a useful service life of 6 years with an estimated salvage value of RM12,000. One labor required to operate the automatic painting machine and three (3) labors for manual painting machine. The salary for each labor is RM 1400 per month. Recommend to the company whether to purchase an automatic or a manual painting machine with expected rate of return of 10% per year. (Include all calculations in terms of tabulated forms of cash flow, cash flow diagram, and calculation of Present Worth Analysis or Future Worth Analysic 3 A manufacturing company is evaluating two alternatives; the purchase of an automatic painting machine and a manual painting machine for car body parts painting process. Automatic painting machine which costs RM220,000, has annual maintenance costs of RM13,000 start at year 3, and a useful service life of 6 years with an estimated salvage value of RM50,000. The manual painting machine, will have a first cost of RM70,000, an annual maintenance costs of RM3,500 at year 2 and increase RM1,500 every year, and a useful service life of 6 years with an estimated salvage value of RM12,000. One labor required to operate the automatic painting machine and three (3) labors for manual painting machine. The salary for each labor is RM 1400 per month. Recommend to the company whether to purchase an automatic or a manual painting machine with expected rate of return of 10% per year. (Include all calculations in terms of tabulated forms of cash flow, cash flow diagram, and calculation of Present Worth Analysis or Future Worth Analysic