As a Project Engineer, you have been tasked to make an analysis and to recommend to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the 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, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. No. Description Unit Brand X Brand Y 250 MT mobile crane specification 5 years 1 unit No warranty warranty RM 2,000,000 2 Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd 3 Monthly RM 80,000 RM 80,000 party if no purchase is made Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus inspection by Puspakom and Dept Per 6 5. of Occupational Safety and Health RM 3,000 RM 8,000 months (DOSH) 6. Estimated Operator and fuel cost Monthly RM 15,000 RM 20,000 Disposal value at end of the project 7 construction, 3 years Unit RM 1,200,000 RM 600,000 4. 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 crane? What is your recommendation and why? (CCO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, PO11, C4) As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the 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, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. No. Description Unit Brand X Brand Y 250 MT mobile crane specification 5 years 1 unit No warranty warranty RM 2,000,000 2 Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd 3 Monthly RM 80,000 RM 80,000 party if no purchase is made Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus inspection by Puspakom and Dept Per 6 5. of Occupational Safety and Health RM 3,000 RM 8,000 months (DOSH) 6. Estimated Operator and fuel cost Monthly RM 15,000 RM 20,000 Disposal value at end of the project 7 construction, 3 years Unit RM 1,200,000 RM 600,000 4. 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 crane? What is your recommendation and why? (CCO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, PO11, C4) As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the 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, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. No. Description Unit Brand X Brand Y 250 MT mobile crane specification 5 years 1 unit No warranty warranty RM 2,000,000 2 Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd 3 Monthly RM 80,000 RM 80,000 party if no purchase is made Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus inspection by Puspakom and Dept Per 6 5. of Occupational Safety and Health RM 3,000 RM 8,000 months (DOSH) 6. Estimated Operator and fuel cost Monthly RM 15,000 RM 20,000 Disposal value at end of the project 7 construction, 3 years Unit RM 1,200,000 RM 600,000 4. 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 crane? What is your recommendation and why? (CCO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, PO11, C4) As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the 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, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. No. Description Unit Brand X Brand Y 250 MT mobile crane specification 5 years 1 unit No warranty warranty RM 2,000,000 2 Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd 3 Monthly RM 80,000 RM 80,000 party if no purchase is made Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus inspection by Puspakom and Dept Per 6 5. of Occupational Safety and Health RM 3,000 RM 8,000 months (DOSH) 6. Estimated Operator and fuel cost Monthly RM 15,000 RM 20,000 Disposal value at end of the project 7 construction, 3 years Unit RM 1,200,000 RM 600,000 4. 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 crane? What is your recommendation and why? (CCO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, PO11, C4) As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the 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, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. No. Description Unit Brand X Brand Y 250 MT mobile crane specification 5 years 1 unit No warranty warranty RM 2,000,000 2 Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd 3 Monthly RM 80,000 RM 80,000 party if no purchase is made Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus inspection by Puspakom and Dept Per 6 5. of Occupational Safety and Health RM 3,000 RM 8,000 months (DOSH) 6. Estimated Operator and fuel cost Monthly RM 15,000 RM 20,000 Disposal value at end of the project 7 construction, 3 years Unit RM 1,200,000 RM 600,000 4. 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 crane? What is your recommendation and why? (CCO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, PO11, C4) As a Project Engineer, you have been tasked to make an analysis and to recommend to your company on the economic justification on the 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, it is to be rented out for 10 days a month. The Brand X is the newer crane which has better fuel efficiency and lower maintenance cost. Based on your data gathering, you have this information derived for the analysis. No. Description Unit Brand X Brand Y 250 MT mobile crane specification 5 years 1 unit No warranty warranty RM 2,000,000 2 Cost of the crane Unit RM 1,200,000 Saving on the crane rental from 3rd 3 Monthly RM 80,000 RM 80,000 party if no purchase is made Estimated income from rental Daily RM 5,000 RM 5,000 Estimated maintenance cost plus inspection by Puspakom and Dept Per 6 5. of Occupational Safety and Health RM 3,000 RM 8,000 months (DOSH) 6. Estimated Operator and fuel cost Monthly RM 15,000 RM 20,000 Disposal value at end of the project 7 construction, 3 years Unit RM 1,200,000 RM 600,000 4. 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 crane? What is your recommendation and why? (CCO3, PO11, C4) c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? - include the cashflow diagram (CO3, PO11, C4)
Expert Answer:
Answer rating: 100% (QA)
solution Given that We are as a project engineer is decided to economic justification for company on ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these civil engineering questions
-
You have been tasked to determine whether Raleigh Inc.'s stock is fairly priced. Raleigh Inc. currently has EBIT of $5M, $10M of debt outstanding at 9%, and a tax rate of 28%. Raleigh Inc. has...
-
As the marketing manager, you have been tasked to consider expanding the detergent product line. Brand XYZ is a discount detergent product that expects to generate $50 million dollars in sales per...
-
You have been tasked with arranging Internet access for other employees in your company. Summarize the hardware and software needed.
-
Use the graphs of f and g to solve Exercises 8390. y = g(x) HH y .y = f(x) # X
-
Explain: a. Three types of surveys and discuss their advantages and disadvantages. b. Three types of survey questions and discuss their advantages and disadvantages.
-
Mather sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Mather's purchases of EZslide snowboards during September. During the same month, 102...
-
Solve the following boundary value problem: \[y^{\prime \prime}(x)=f(x), \quad y(0)=0, \quad y(1)=0\] Hence solve \(y^{\prime \prime}(x)=x^{2}\) subject to the same boundary conditions.
-
A major focus of the trial in this case was BDO Seidmans consideration of, and response to, the red flags apparent during the 1995 HMI audit. Define or describe the phrase red flags. Explain the...
-
What has happened if the selling price has increased but the gross profit percentage remains the same?
-
Singleton Supplies Corporation (SSC) manufactures medical products for hospitals, clinics, and nursing homes. SSC may introduce a new type of X-ray scanner designed to identify certain types of...
-
Let K [0, 1] x [0, 1]. Then, show that the integral |/ f(x,y) dxdy is not convergent by K evaluating the following integrals and after that taking limits e0 and e' 0. I f(a, y) ddy, K = {(x, y) E R?...
-
Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $70. Budgeted unit sales for June, July,...
-
What alternative course of action could the Government have taken? What measures can be taken to improve the self-regulating framework of the peg to prevent further speculation against the Hong Kong...
-
Explain the role of telomeres and telomerase in telomere maintenance and cellular senescence, and how dysregulation of these processes contributes to aging-related diseases and cancer progression?
-
The local supermarket normally sells potato chips for $3 a packet and sells 100 packets per week. If the supermarket then discounts the potato chips to $2 a packet and sells 160 packets per week....
-
I'm not going to buy from that store down the street, they don't have the quality of products that I want for my family. I will drive across the tracks (a different community) to buy want I want. "...
-
You are employed as a network consultant at Computer Systems and Networks Design Consultant. An e-commerce business organisation is going through a major transformation because of its expansion. The...
-
Using the information presented in Problem 13.4B, prepare a partial statement of cash flows for the current year, showing the computation of net cash flows from operating activities using the...
-
Using the information provided in BE14- 18, prepare the amortization table for the first two years, assuming Stark uses the straight- line method. In BE14-18 Using the information provided in BE14-...
-
What are the limitations of the balance sheet?
-
Grifols, S. A., is a Spanish pharmaceutical company focusing on the development, manufacturing, and sale of therapeutic products. At the end of 2013, Grifols was rated BB by Standard & Poors and...
-
The Jenkins supermarket manager claims that the scanning errors on purchased items are random, and about half of the errors are in favor of the supermarket. Decide whether the statement makes sense...
-
At a particular moment, the U.S. Census Bureau population clock shows that the global population is 7,118,233,027 people. Describe the accuracy and precision of that population number. Data From...
-
When recording the weight of a watermelon, a supermarket clerk writes the wrong number. Is this type of error a random error or a systematic error? Explain.
Study smarter with the SolutionInn App