What evaluation criterion is used in economic analysis?

There are a number of reasons for not paving a rural road, including low traffic volume, property owners who do not want it paved, speed control, and political issues. On the other hand, paved roads have lower road-user operating costs and are less costly to maintain. In Washington County, a report prepared by the county engineer showed that the construction cost for a stabilized gravel road that will last 3 years is $1,025,000, with a maintenance cost of $355,000 per year. A bituminous road will cost $3,525,000, but it will last for 10 years. Use i = 8% per year. (a) At what maintenance cost per year (for the bituminous road) will the equivalent annual costs of the two roads be the same? (b) If the road is not paved and the annual maintenance cost of the stabilized gravel surface is actually 30% per year higher than estimated, how many years must this surface last for the two to break even, assuming the paved road maintenance would be the breakeven value determined above? Answer these…

(b) SGBP Plantation Sdn Bhd plans to buy a new palm oil truck. There are THREE (3) alternative brands to be evaluated in terms of cost estimation as shown in Table 1. Given the MARR is 10% per annum. Noted that L3D represents the Last Three Digit of student matric number. (i) (ii) Capital Investment (RM) Annual maintenance (RM) Useful life (years) Market Value (RM) (Disposal Cost) Table Q1(b): Palm oil truck TITAN 58,000 + (100 x L3D) 3,000 5 30,000 CIMC 61,000 + (100 x L3D) 2,000 Draw cash-flow diagram for each truck. 10 (iii) Justify which brand should be selected. 15,000 ALIB 67,000 + (100 x L3D) 1,000 10 17,000 Apply the private project evaluation method to compare the annual worth (AW) for each truck.