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Q4 Snowy Car Wash Sdn Bhd is evaluating two alternatives: the purchase of an automatic washing system or a semi-automatic washing system

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Q4 Snowy Car Wash Sdn Bhd is evaluating two alternatives: the purchase of an automatic washing system or a semi-automatic washing system. One person will operate the automatic washing system. On the other hand, the semi-automatic washing system require four workers to operate the system. Table 4 shows the system information. The company estimate 3,500 cars can be washed per year with expected rate of return of 10% per year Evaluate this option with suitable graph for recommendation to the company whether to purchase an automatic or a semi-automatic washing system. (25 marks) Table 4: System Information : Automatic Washing System Semi-automatic Washing System 45.000 150,000 25.000 10,000 10 5 First Cost (RM) Salvage (RM) Life (years) Labour Cost (RM per hour per person) Wash Car (units per hour) Maintenance Cost (RM per year) 15 15 15 6 6,000 10,000 for first year and increase 2.000 every year