Question: engineering economics. Please help me Question 2 [11 marks] RICHWORK Company is a middle size manufacturing company located at Jalan Kelang. The company just purchased

engineering economics. Please help me
engineering economics. Please help me Question 2 [11 marks] RICHWORK Company is

Question 2 [11 marks] RICHWORK Company is a middle size manufacturing company located at Jalan Kelang. The company just purchased an intelligent" robot for its manufacturing line for RM450,000 from Germany. The RM450,000 inclusive of the transportation cost of RM48,000 and import duty cost of RM102,000. Since the robot is unique in its capabilities, the company paid RM30,000 to an expert to teach its staff on how to operate the robot. In addition the company spends RM10,000 per year in the maintenance and operation of the robot. The robot is expected to be used for five (5) years with an estimated salvage value of RM90,000 at the end of its five years useful life. (1) Determine the depreciable basis of the robot purchased. [2 marks] (ii) Determine the depreciation expense and book value of the robot for year three (3) using (a) Straight Line method (b) Double Declining Balance method Show all your calculations. [7 marks] (iii) Explain why there is a difference in terms of depreciation expenses year 4 using both method. [2 marks]

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