Your company are invited to propose a new multipurpose transportation terminal in southern region state as a hub for air, sea and land transportation. Also included in the project is to build custom and Immigration facilities. The land acquisition is estimated to be RM30 million Construction cost for the terminal and other facilities is expected to be RM 86 million with an additional annual maintenance cost of RM 9 million. The custom and Immigration facilities building and sophisticated equipment should also be considered with a cost of RM 27 million and RM 6 million per year maintenance expenditures. 1. Determine the value of Total Cost, Benefit and Disbenefit from the above statement II. Apply the B-C ratio method for both conventional and modified cases using PW and AW methods with the study period of 20 years and a MARR of 20% per year to determine whether the project should be proceed. EXERCISE 5.2B Table Ql: Annual benefits of the JAY Corporation Jetty project Rental receipts from ferry & boats RM300,000 Jetty charges to passengers RM240,000 Convenience benefit to the local community RM60,000 Additional tourism income to state of Johor RM120,000 Apply the B-C ratio method for both conventional and modified cases using PW and AW methods with the study period of 10 years and a MARR of 15% per year to determine whether JAY Corporation should proceed with the jetty project. (30 marks) JAY Corporation is considering a new project to construct a new jetty near Danga Bay for the use of gateway tourisms ferry to and from Singapore and Indonesia. Also included in the project is to build custom and immigration facilities. The land acquisition is estimated to be RM1.2 million. Construction cost for the jetty and other facilities is expected to be RM1.8 million with an additional annual maintenance cost of RM 90,000. Finally, the projected increase in marina travelers will require an additional jetty traffic controller with an annual cost of RM50,000. Market value of some assets at the end of useful life is estimated RM20,000. Annual benefits of the jetty have been estimated as in Table Q1. Your company are invited to propose a new multipurpose transportation terminal in southern region state as a hub for air, sea and land transportation. Also included in the project is to build custom and Immigration facilities. The land acquisition is estimated to be RM30 million Construction cost for the terminal and other facilities is expected to be RM 86 million with an additional annual maintenance cost of RM 9 million. The custom and Immigration facilities building and sophisticated equipment should also be considered with a cost of RM 27 million and RM 6 million per year maintenance expenditures. 1. Determine the value of Total Cost, Benefit and Disbenefit from the above statement II. Apply the B-C ratio method for both conventional and modified cases using PW and AW methods with the study period of 20 years and a MARR of 20% per year to determine whether the project should be proceed. EXERCISE 5.2B Table Ql: Annual benefits of the JAY Corporation Jetty project Rental receipts from ferry & boats RM300,000 Jetty charges to passengers RM240,000 Convenience benefit to the local community RM60,000 Additional tourism income to state of Johor RM120,000 Apply the B-C ratio method for both conventional and modified cases using PW and AW methods with the study period of 10 years and a MARR of 15% per year to determine whether JAY Corporation should proceed with the jetty project. (30 marks) JAY Corporation is considering a new project to construct a new jetty near Danga Bay for the use of gateway tourisms ferry to and from Singapore and Indonesia. Also included in the project is to build custom and immigration facilities. The land acquisition is estimated to be RM1.2 million. Construction cost for the jetty and other facilities is expected to be RM1.8 million with an additional annual maintenance cost of RM 90,000. Finally, the projected increase in marina travelers will require an additional jetty traffic controller with an annual cost of RM50,000. Market value of some assets at the end of useful life is estimated RM20,000. Annual benefits of the jetty have been estimated as in Table Q1