Question: please help me solve this question and add some comments for my understanding ? Q4 Majlis Perbandaran Hang Tuah (MPHT) is considering two options for

 please help me solve this question and add some comments for

please help me solve this question and add some comments for my understanding ?

my understanding ? Q4 Majlis Perbandaran Hang Tuah (MPHT) is considering two

Q4 Majlis Perbandaran Hang Tuah (MPHT) is considering two options for upgrading its old rehabilitation facilities. Plan A involves remodeling the rehabilitation center on Ayer Keroh (AK) and Bukit Katil (BK) center that are 12 and 21 years old, respectively. The cost for remodeling the AK center is estimated at RM 900 000 while the cost of redoing the BK center is RM 2.4 million. Plan B calls for buying 2 acres of land somewhere between the two center, building a new rehabilitation center, and selling the land and structures at the previous sites. The cost of land in that area is estimated to be RM 100,000 per acre. The size of the new center would be 20 000 square feet with a construction cost of RM 180 per square foot. Contractor fees for overhead are expected to be RM 88 000, and architect fees will be RM 44 000, with all of the costs for plan B occur at time 0. If plan A is adopted, the extra cost for maintenance will be RM 30 000 per year and increase RM 5 000 per year. Under plan B, the sale of the old sites is anticipated to net a positive RM 700 000 three years in the future. Recommend the best plan using an interest rate of 8 % per year compounded yearly and a 10-year useful life for the remodeled and new stations

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