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. Suggest TWO (2) decisions on material handling alternatives to the co

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
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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. Suggest TWO (2) decisions on material handling alternatives to the company with suitable assumptions. 

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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