Question : Your company has been invited to participate in tender exercise for the above mentioned job, and
YOU, as a the Chief Financial Officer have been entrusted by your Chief Executive Officer (CEO) to
study the job from the financial point of view (Present, Annual and Future Worth analyses), and to
finally propose the best alternative.
However, your final conclusion may not be necessarily based on these analyses. You may conclude
based on Life-Cycle Cost (LCC) analysis, environmental issue, technology forecast and so on.
Your proposal is to be submitted to your CEO for further scrutiny.
Assume the MARR is 8%. Use DDB for asset depreciation calculation, with the annual inflation rate
of 3.5%.