(b) SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table 1. Given the MARR is 10% per annum. Noted that L3D represents the Last Three Digit of student matric number. Table Q1(b): Palm oil truck

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Chapter1: Making Economics Decisions
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1
Economics
Here, L3D=001
(b)
SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3)
alternative brands to be evaluated in terms of cost estimation as shown in Table 1.
Given the MARR is 10% per annum. Noted that L3D represents the Last Three Digit
of student matric number.
(i)
(ii)
(iii)
Capital Investment
(RM)
Annual maintenance
(RM)
Useful life (years)
Market Value (RM)
(Disposal Cost)
Table Q1(b): Palm oil truck
CIMC
61,000+
(100 x L3D)
2,000
TITAN
58,000 +
(100 x L3D)
3,000
5
30,000
Draw cash-flow diagram for each truck.
10
Justify which brand should be selected.
15,000
ALIB
67,000 +
(100 x L3D)
1,000
10
17,000
Apply the private project evaluation method to compare the annual worth
(AW) for each truck.
Transcribed Image Text:Economics Here, L3D=001 (b) SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table 1. Given the MARR is 10% per annum. Noted that L3D represents the Last Three Digit of student matric number. (i) (ii) (iii) Capital Investment (RM) Annual maintenance (RM) Useful life (years) Market Value (RM) (Disposal Cost) Table Q1(b): Palm oil truck CIMC 61,000+ (100 x L3D) 2,000 TITAN 58,000 + (100 x L3D) 3,000 5 30,000 Draw cash-flow diagram for each truck. 10 Justify which brand should be selected. 15,000 ALIB 67,000 + (100 x L3D) 1,000 10 17,000 Apply the private project evaluation method to compare the annual worth (AW) for each truck.
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