Question: As a project engineer, you are tasked to develop a new manufacturing line. The new line is estimated to cost RM10 million and the

As a project engineer, you are tasked to develop a new manufacturing

As a project engineer, you are tasked to develop a new manufacturing line. The new line is estimated to cost RM10 million and the whole manufacturing line can be sold for RM1 million at 10th year. It is expected to generate annual income of RM5 million and will incur RM0.4 million per year in maintenance and operating cost. The MARR is 6% per year and the study period is 10 years. By using PW method, evaluate: (i) the estimated profit or loss of this proposal, the percentage change of income to breakeven, (3 marks) the percentage change of investment cost to breakeven, (3 marks) the percentage change of maintenance and operating cost to breakeven and (3 marks) (ii) (iii) (iv) (v) (4 marks) the percentage change of salvage value to breakeven to establish sensitivity study. (3 marks)

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