with cash flow diagram

Example: Different-Life Alternatives FKP Homebuilders Sdn Bhd, plans to purchase new cut-and-finish equipment. Two manufacturers offered the estimates below. Vendor B First cost, RM Vendor A 15 000 3 500 18 000 Annual operating cost (AOC), RM/year 3 100 1 000 2000 Salvage value S, RM Life, years 6 (a) Analyse which vendor should be selected on the basis of a present worth comparison, if the MARR is 15% per year. (b) FKP Homebuilders Sdn Bhd has a standard practice of evaluating all options over a 5-year period. If a study period of 5 years is used and the salvage values are not expected to change, analyse which vendor should be selected