Question: i need an answer 23(a) Jatimas Sdn. Bhd. is evaluating new office equipment offered by two company. In each case the interest rate is 15%
i need an answer
23(a) Jatimas Sdn. Bhd. is evaluating new office equipment offered by two company. In each case the interest rate is 15% and the useful life of the equipment is 4 years. Table Q3(a) show the list of proposals. Determine which proposal should be selected based on using incremental analysis Benefit Cost Ration PW? Justify your answer. (10 marks) b) The management of Triz Holding is considering purchasing an equipment to be attached with the main machine. The equipment will cost RM6,000 and will increase annual cash inflow by RM2,200. The useful life of the equipment is 6 years. After 6 years, it will have zero salvage value. Assume i=10%. i) Determine the payback period for this equipment purchase. (3 marks) ii) Evaluate the project is viable using Net Present Value (NPV) method. (4 marks) iii) Determine if the project viable using the IRR method when the MARR is 20%
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