The Property Division of PT Aetra is considering the proposal for 2 alternative elevators X and Y to be used for the head office building. Both types of elevators have a service life of 20 years, with no residual value at the end of their service life. If the elevator X investment is Rp. 200 million with operational and maintenance costs (annual O&M Cost) of Rp. 30 million per year. Meanwhile, elevator Y requires an investment of Rp. 250 million with operational and maintenance costs of Rp. 20 million per year.

Question: Which type of elevator should be chosen if the MARR Div. Property 10% per year.

Answer rating: 100% (QA)

To determine which type of elevator should be chosen we will use the Net Present Value NPV method co... View the full answer