GDB3023Z 5. a. Assess the rationale of considering incremental cash flows in assessing mutually exclusive projects and the extent to which this approach will be beneficial especially when there are more than two projects. EXAM SEPT 20 [5 marks] TO To improve the current operations at a carton box producers infrastructure, a corrugator machine was upgraded with hi-tech sensors at a cost of RM435,000. The operating cost is expected to be RM17O, 000 per year for the first 2 years and RM200,000 for the next 3 years. The salvage value of the equipment is expected to be RM90,000 only for the first 2 years. At an MARR of 10% per year, calculate the following: b. TO 02 i. The economic service life (ESL) of the equipment and associated annual worth. [10 marks] The percentage increase in the AW of cost if the equipment is retained 3 years longer than the ESL i. [5 marks]
GDB3023Z 5. a. Assess the rationale of considering incremental cash f
GDB3023Z 5. a. Assess the rationale of considering incremental cash flows in assessing mutually exclusive projects and the extent to which this approach will be beneficial especially when there are more than two projects. EXAM SEPT 20 [5 marks] TO To improve the current operations at a carton box producers infrastructure, a corrugator machine was upgraded with hi-tech sensors at a cost of RM435,000. The operating cost is expected to be RM17O, 000 per year for the first 2 years and RM200,000 for the next 3 years. The salvage value of the equipment is expected to be RM90,000 only for the first 2 years. At an MARR of 10% per year, calculate the following: b. TO 02 i. The economic service life (ESL) of the equipment and associated annual worth. [10 marks] The percentage increase in the AW of cost if the equipment is retained 3 years longer than the ESL i. [5 marks]
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