(b) Wong and Partners Sdn. Bhd. plans to purchase a new machine to start amanufacturing plant. Two manufacturers offered the estimates below:Table 1: Cash flows summary of the investmentsSupplier ASupplier B100,000 150,000ItemPurchasing Price (RM)Annual Maintenance Cost (RM/ vear) 3.000Salvage value (RM)Life (year)2.5002,0001,0006.i. Determine which supplier should be selected based on a present worthcomparison if the MARR is 15 % per year.ii. If Wong and Partners Sdn. Bhd. has a standard practice ofevaluating all options over a 5-year period. Which vendorshould be selected? Assume the salvage values are not expectedto change

Answered: Image /qna-images/answer/83b6a2ad-1bd2-487a-9bd1-a0fb5b8924cc.jpg

Answered: (b) Wong and Partners Sdn. Bhd. plans…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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