Campus board of directors has approved the budget of RM 1 million for this purpose, which to be completed in 5 years once the tender has been awarded. Campus will disburse to the tenderer in 5 equal annual payments one year after the tender is awarded, provided all project milestones are achieved. From the architectural and landscape design perspectives, there are two prevailing alternatives to be considered; 

1. Healing gardens where greenery and plants produce restorative effects. 

2. Flexible spaces, which include structures or buildings that accommodate functional needs of different student activities.Your company has been invited to participate in tender exercise for the above-mentioned job, and YOU, as a the Chief Financial Officer have been entrusted by your Chief Executive Officer (CEO) to study the job from the financial point of view (Present, Annual and Future Worth analyses), and to finally propose the best alternative. However, your final conclusion may not be necessarily based on these analyses. You may conclude based on Life-Cycle Cost (LCC) analysis, environmental issue, technology forecast and so on. Your proposal is to be submitted to your CEO for further scrutiny. Assume the MARR is 8%. Use DDB for asset depreciation calculation, with the annual inflation rate of 3.5%.

Answer rating: 100% (QA)

Present Worth Analysis The present worth analysis involves an analysis of the present dollar value of a projects future costs and benefits The present worth of the project can be calculated by discoun... View the full answer