Question: Answer ALL questions; [Total = 20 Marks] As a Project Engineering had been tasked to make an analysis and to recommend to your company on

Answer ALL questions; [Total = 20 Marks] As a
Answer ALL questions; [Total = 20 Marks] As a
Answer ALL questions; [Total = 20 Marks] As a Project Engineering had been tasked to make an analysis and to recommend to your company on the economic justification on option to purchase a used 250MT mobile crane. The decision is in between Brand X or Brand Y 250 MT mobile crane to be used for the company's project construction activities as well as providing some rental business for three years. As the crane is not used for the whole time, 10-days a month it is being rented out. The Brand X is the newer crane which having better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. Brand Y No. Description Unit 1 250 MT mobile crane specification unit 2 Cost of the crane Unit Save on the crane rental from 3rd 3 party Monthly 4 Estimated income from rental Daily Estimated maintenance cost plus Per 6 5 inspection by Puspakom and DOSH months Estimated Operator and fuel cost Monthly Dispose value at end of the project 7 construction, 3 years Unit Brand X 5 years warranty RM 2,000,000 RM 80,000 RM 5,000 No warranty RM 1,200,000 RM 80,000 RM 5,000 RM 3,000 RM 8,000 6. RM 20,000 RM 15,000 RM 1,200,000 RM 600,000 a) Based on Return of Investment (ROI) evaluation, which unit will you recommend to your management to be purchased and why? (CO3, PO11, C4) b) From Life Cycle Cost (LCC) Analysis, would you Brand X or Brand Y crano? What is your recommendation and why? (CO3, P011. C4) c) Based on the Minimum Acceptable Rate of Retum (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, P011, C4)

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