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TABLE Q3 Description Design A (RM) 8,000,000 60,000 Design B (RM) 10,000,000 Design C (RM) 9,000,000 Construction cost Repairs and replacement cost at year 5 Repairs and replacement cost at year 8 Repairs and replacement cost at year 10 Periodical maintenance every 5 years 75,000 85,000 70,000 750,000 50,000 50,000 40,000 650,000 Salvage revenue Operation and maintenance cost annually Project income annually Life span (years) Discount rate 550,000 60,000 40,000 40,000 70,000 60,000 45 years 4.88 %

TABLE Q3 Description Design A (RM) 8,000,000 60,000 Design B (RM) 10,000,000 Design C (RM) 9,000,000 Construction cost Repairs and replacement cost at year 5 Repairs and replacement cost at year 8 Repairs and replacement cost at year 10 Periodical maintenance every 5 years 75,000 85,000 70,000 750,000 50,000 50,000 40,000 650,000 Salvage revenue Operation and maintenance cost annually Project income annually Life span (years) Discount rate 550,000 60,000 40,000 40,000 70,000 60,000 45 years 4.88 %

Essentials Of Investments
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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A project will be constructed at Parit Raja, Batu Pahat, Johore with a limited budget from the government. The designer has put forward three design proposals and you were engaged as Building Maintenance Consultant to undertake a life cycle cost analysis (LCCA) based on the three designs and advice on the most economical design to be constructed. Based on the information given in Table Q3, recommend the most economical design based on the LCCA to choose from.

TABLE Q3 Design C (RM) 9,000,000 Description Design A (RM) 8,000,000 60,000 Design B (RM) 10,000,000 Construction cost Repairs and replacement cost at year 5 Repairs and replacement cost at year 8 Repairs and replacement cost at year 10 Periodical maintenance every 5 years Salvage revenue Operation and maintenance cost annually Project income annually Life span (years) Discount rate 75,000 85,000 50,000 550,000 70,000 40,000 650,000 40,000 70,000 750,000 60,000 50,000 40,000 60,000 45 years 4.88 %
Transcribed Image Text:TABLE Q3 Design C (RM) 9,000,000 Description Design A (RM) 8,000,000 60,000 Design B (RM) 10,000,000 Construction cost Repairs and replacement cost at year 5 Repairs and replacement cost at year 8 Repairs and replacement cost at year 10 Periodical maintenance every 5 years Salvage revenue Operation and maintenance cost annually Project income annually Life span (years) Discount rate 75,000 85,000 50,000 550,000 70,000 40,000 650,000 40,000 70,000 750,000 60,000 50,000 40,000 60,000 45 years 4.88 %
Q3 A project will be constructed at Parit Raja, Batu Pahat, Johore with a limited budget from the government. The designer has put forward three design proposals and you were engaged as Building Maintenance Consultant to undertake a life cycle cost analysis (LCCA) based on the three designs and advice on the most economical design to be constructed. Based on the information given in Table Q3, recommend the most economical design based on the LCCA to choose from.
Transcribed Image Text:Q3 A project will be constructed at Parit Raja, Batu Pahat, Johore with a limited budget from the government. The designer has put forward three design proposals and you were engaged as Building Maintenance Consultant to undertake a life cycle cost analysis (LCCA) based on the three designs and advice on the most economical design to be constructed. Based on the information given in Table Q3, recommend the most economical design based on the LCCA to choose from.
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