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You are an engineer at a well renowned electronic company in Penang. The company is considering to purchase a new Surface Mount Technology (SMT)

You are an engineer at a well renowned electronic company in Penang. The company is considering to purchase a new Surface Mou 

You are an engineer at a well renowned electronic company in Penang. The company is considering to purchase a new Surface Mount Technology (SMT) component placement machine. The company was given 2 options to choose from; SMT Alpha and SMT Echo. As a graduate engineer from UniMAR, you are given the task to calculate the present worth value of each machine (SMT Alpha and SMT Echo) if the initial cost and maintenance cost of the machine is assumed to increase at 6% annual compounded rate. Revenues for both alternatives are expected to be the same. Then you are to make the recommendation to the management team on which SMT machine has better investment value. Table 1 shows the details of each SMT Machine. Initial Cost (Kos Permulaan) Estimated Lifespan (Jangkahayat) Salvage Value (Nilai Sisaan) Maintenance Costs (Kos Penyelengaraaan) [Jadual 1] SMT Alpha RM 80,000 20 years (tahun) RM 20,000 RM 18,000 per year (per tahun) SMT Echo RM100,000 25 years (tahun) RM 25,000 RM15,000 per year (per tahun)

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