Table 1: Forklift Cost Information Item Forklift A Forklift B First Cost, RM 90,000 50,000 Annual Operating Cost, 2000 500 RM Change Maintenance part 800 every 2 year 3000 per year Useful Life, years 3 Salvage Value, RM 30,000 10,000

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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The engineering department have appointed you on a task purchasing new forklift to transport sheet metal part. From your research, two types of forklift have been finalized as shown in Table 1 for their material handling plan in 6 years. The company also has another option; using manual material handling with 3 workers and the salary of each worker is RM1,200 per month.

Develop the cash flow diagram for above suggestion alternative

Table 1: Forklift Cost Information
Item
Forklift A
Forklift B
First Cost, RM
90,000
50,000
Annual Operating Cost,
2000
500
RM
Change Maintenance part
800 every 2 year
3000 per year
Useful Life, years
3
Salvage Value, RM
30,000
10,000
Transcribed Image Text:Table 1: Forklift Cost Information Item Forklift A Forklift B First Cost, RM 90,000 50,000 Annual Operating Cost, 2000 500 RM Change Maintenance part 800 every 2 year 3000 per year Useful Life, years 3 Salvage Value, RM 30,000 10,000
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