Question: PLEASE SHOW THE SOLUTION STEP BY STEP CLEARLY A. Figure 3.1 ghows a cash flow diagram for an engineering project. The project has an initial

PLEASE SHOW THE SOLUTION STEP BY STEP CLEARLY

PLEASE SHOW THE SOLUTION STEP BY STEP CLEARLY A. Figure 3.1 ghows

A. Figure 3.1 ghows a cash flow diagram for an engineering project. The project has an initial investment of RM 150,000 and expenditure of RM 10,000 every gix months for 5 years. Figure 3.1: Cash flow of an engineering project You have been aaked to determine the minimum income required for every month starting from the first month in year 2 until the end of year 5 to cover all the project costs. (6 marks) B. A wealthy businesswoman wants to start a permanent fund for supporting research in UTM directed toward gustainability. The donor plans to give equal amounts of money for each of the next 5 years, plus one now (i.e., six donations) so that RM100,000 per year can be withdrawn each year forever, beginning in year 6 . If the fund earns interest at a rate of 10% per year, analyze how much money must be donated each year? (4 marks) C. Two manufacturers supply Magnetic Resonance Imaging (MRI) systems (Systems A and B) for medical imaging. Sultan Aminah Hospital wishes to replace its current MRI equipment that was purchased 8 years ago with the newer technology and clarity of a state of-the-art system. System A will have a first cost of RM 1,600,000, an operating cost of RM 70,000 per year, and a salvage value of RM 400,000 after its 4-year life. System B will have a first cost of RM 2,100,000, operating costs of RM 50,000 and RM 60,000 the first and the SEMM/SKMM 3813 second year with an expected increase of RM 3,000 per year thereafter. No salvage value after its 8-year life. Evaluate which system should be selected on the basis of a future worth analysis at an interest rate of 12% per year? Draw cash flow diagrams for each system and show all the calculations. (10 marks) A. Figure 3.1 ghows a cash flow diagram for an engineering project. The project has an initial investment of RM 150,000 and expenditure of RM 10,000 every gix months for 5 years. Figure 3.1: Cash flow of an engineering project You have been aaked to determine the minimum income required for every month starting from the first month in year 2 until the end of year 5 to cover all the project costs. (6 marks) B. A wealthy businesswoman wants to start a permanent fund for supporting research in UTM directed toward gustainability. The donor plans to give equal amounts of money for each of the next 5 years, plus one now (i.e., six donations) so that RM100,000 per year can be withdrawn each year forever, beginning in year 6 . If the fund earns interest at a rate of 10% per year, analyze how much money must be donated each year? (4 marks) C. Two manufacturers supply Magnetic Resonance Imaging (MRI) systems (Systems A and B) for medical imaging. Sultan Aminah Hospital wishes to replace its current MRI equipment that was purchased 8 years ago with the newer technology and clarity of a state of-the-art system. System A will have a first cost of RM 1,600,000, an operating cost of RM 70,000 per year, and a salvage value of RM 400,000 after its 4-year life. System B will have a first cost of RM 2,100,000, operating costs of RM 50,000 and RM 60,000 the first and the SEMM/SKMM 3813 second year with an expected increase of RM 3,000 per year thereafter. No salvage value after its 8-year life. Evaluate which system should be selected on the basis of a future worth analysis at an interest rate of 12% per year? Draw cash flow diagrams for each system and show all the calculations. (10 marks)

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