Telur Sihat Sdn. Bhd. plans to upgrade their sorting system using conveyor belts. To ensure...
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Telur Sihat Sdn. Bhd. plans to upgrade their sorting system using conveyor belts. To ensure increase in productivity and profit, the engineer in charged has evaluated several options and proposed two mutually exclusive alternatives that are flat belt conveyor and roller bed conveyor belt. Their relevant information is summarized as follows: Flat belt Roller bed First cost, RM 75,000 110,000 Annual profit, RM 42,000 60,000 Annual maintenance cost, RM 20,000 35,000 Market value, RM 9,500 35,000 Life, years 6 8
MARR is 15% per year, determine a more economically viable system, based on: (a) future worth analysis. (10 marks) (b) annual worth analysis, if the company evaluates based on a 5-year period, with the same market values for both systems. (10 marks)
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