2. There are two methods that can be used to reduce noise from wood processing machinery at Maya company Sdn. Bhd. Metho

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2 There Are Two Methods That Can Be Used To Reduce Noise From Wood Processing Machinery At Maya Company Sdn Bhd Metho 1 (44.96 KiB) Viewed 40 times

2. There are two methods that can be used to reduce noise from wood processing machinery at Maya company Sdn. Bhd. Method X has an initial cost of RM 200,000, operation cost of RM 7,500 per month and salvage value of RM 50,000 for a life time of 2 years. Meanwhile, method Y has an initial cost of RM 250,000, operation cost of RM 5,000 per month and salvage value of RM 25,000 for a life time of 4 years. Use a Present Worth (PW) method to evaluate which methods should be selected based on the lowest cost incurred with an interest of 12% compounded quarterly every month.

2. PWx= - RM 571,927 PWy = - RM 424,363 Choose method Y because of the cost is less