Question: Question (LCM) : Idea Design Sdn Bhd is a graphic designer company in Perlis. Currently they want to set up a new studio to enhance

Question (LCM) : Idea Design Sdn Bhd is a graphic

Question (LCM) : Idea Design Sdn Bhd is a graphic designer company in Perlis. Currently they want to set up a new studio to enhance the quality of design by using high-end specification computer system. There are 3 types of choices of computer system available in market, which are Lenovo P40 Yoga, MacBook Pro and Microsoft Surface Book. Perform a future worth (FW) analysis of equal service units by using LCM method, with the costs shown in Table 1. Revenues for all three types are expected to be the same and the minimum attractive rate of return (MARR) of the investment is 8% per year. Draw Cash Flow Diagram (CFD) for each system to show the LCM method used. Table 1 Solution Lenovo P40 Yoga Macbook Pro Microsoft Surface Book First value (RM) 6,600 8,800 14,080 Annual operating cost (RM/year) 500 450 800 Salvage value (RM) 2,000 7,000 6,500 Life Span (years) 6 3

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