7. Seri Kayangan Local City Council intends to buy a garbage truck to replace the broken old truck. There are two altern

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7 Seri Kayangan Local City Council Intends To Buy A Garbage Truck To Replace The Broken Old Truck There Are Two Altern 1 (135.25 KiB) Viewed 8 times

7. Seri Kayangan Local City Council intends to buy a garbage truck to replace the broken old truck. There are two alternatives that is mutually exclusive for the garbage truck and the details information regarding this are shown in the table below: (i) (ii) Cost and Sales Items Initial Cost, RM Operation and Maintenance Cost per month, RM Repair cost for every 2 years, RM Repair cost for every 4 years, RM Salvage value, RM Lifespan, Year Alternative X Alternative Y 60,000 9,500 1,500 1,700 5,000 0 7,000 3 0 7,000 10,000 6 Do the evaluation on both alternatives using Present Worth (PW) method. Assume the interest for the loan is 12% compounded every month. Determine which alternative is the best alternative to be selected.