Appendix 1

UNIVERSITI TUNKU ABDUL RAHMAN ACADEMIC

YEAR 2022/2023 JANUARY 2023
TRIMESTER

UBEQ1013 QUANTITATIVE TECHNIQUES I

Faculty :

Year and Trimester of study :

Tutor’s Name :

Tutorial Group :

Group members

No. Name Student’s ID Course

1 Khor Yu Jun 2105090 BAC

2
Note: Arrange name according to alphabetical order and course

For tutor use only

Question 1 / 25
Question 2 / 30
Question 3 / 25
Total / 80
Question 1
a) Formulate the linear programming model with the information provided.
YOLO SOLO KOLO Maximum
Labour 3 5 5 80
Machine A (min) 3 5 5 360
Machine B (min) 10 20 15 480
Revenue per unit (RM) 50 50 45

Let x = number of units Company AAA produced YOLO

y = number of units Company AAA produced SOLO
z = number of units Company AAA produced KOLO
Revenue: R= 50 x +50 y +45 z
Subject to: 3 x + 5 y + 5 z ≤ 80
3 x + 5 y + 5 z ≤ 360
10 x + 20 y + 15 z ≤ 480
x ≥ 0, y ≥ 0, z ≥ 0

b) Generate the Answer report and Sensitivity Report.

Microsoft Excel 16.0 Answer Report
Worksheet: [assignment.xlsx]Sheet1
Report Created: 3/27/2023 9:26:43 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.109 Seconds.
Iterations: 1 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume
NonNegative

Objective Cell (Max)

Cell Name Original Final Value
Value
$I$7 OBJT level of activities 0 1333.333333
Variable Cells
Cell Name Original Final Value Integer
Value
$F$3 Formula YOLO 0 26.66666667 Contin
$G$3 Formula SOLO 0 0 Contin
$H$3 Formula KOLO 0 0 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$I$4 Labour level of activities 80 $I$4<=$K$4 Binding 0
$I$5 Machine A level of activities 80 $I$5<=$K$5 Not Binding 280
$I$6 Machine B level of activities 266.6666667 $I$6<=$K$6 Not Binding 213.3333333

Microsoft Excel 16.0 Sensitivity Report

Worksheet:
[assignment.xlsx]Sheet1
Report Created: 3/27/2023 9:26:43 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Coefficien
Cell Name Value Cost t Increase Decrease
$F$ 26.6666666
3 Formula YOLO 7 0 50 1E+30 20
-
$G$ 33.3333333 33.3333333
3 Formula SOLO 0 3 50 3 1E+30
-
$H$ 38.3333333 38.3333333
3 Formula KOLO 0 3 45 3 1E+30

Constraints
Constrain
Final Shadow t Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
16.6666666
$I$4 Labour level of activities 80 7 80 64 80
Machine A level of
$I$5 activities 80 0 360 1E+30 280
Machine B level of 266.666666 213.333333
$I$6 activities 7 0 480 1E+30 3
c) What is the maximum revenue that can be generated from shoes production?
Maximum revenue= RM1333.33

d) Determine the binding and non-binding constraints. Justify your answers.

S1= 0, S2= 280, S3= 213.333
3 x + 5 y + 5 z + S1= 80
3 x + 5 y + 5 z + S2= 360
10 x + 20 y + 15 z + S3= 480

x = 26.6667, y = 0, z = 0

3 x + 5 y + 5 z + S1 = 80
3(26.6667) + 5(0) + 5(0) +S1 = 80
80 + S1 = 80
S1 = 80- 80
= 0 (Binding)

3 x + 5 y + 5 z + S2 = 360
3(26.6667) + 5(0) + 5(0) +S2 = 360
80+ S2 = 360
S2 = 360- 80
= 280 (Non-binding)

10 x + 20 y + 15 z + S3 = 480
10(26.6667) + 20(0) + 15(0) +S3 = 480
266.667 + S3 = 480
 S3 = 480- 266.667
= 213.333 (Non-binding)

e) Which level of activity should not be increased by Company AAA to increase the
revenue from the production? Justify your answers.
‘1E +30’ represent the fact that any increases in the availability of a loose resource will have no
impact on the optimal solution. Therefore, Machine A and Machine B should not be increased by
Company AAA to increase the revenue from the production.

f) With all the resources remaining unchanged, the revenue of a pair of shoes YOLO
increase from RM50 to RM75, what are the new revenue and optimal production?
Microsoft Excel 16.0 Answer Report
Worksheet: [assignment.xlsx]Sheet4
Report Created: 3/27/2023 10:14:55 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.094 Seconds.
Iterations: 1 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume
NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$I$7 OBJT level of activities 0 2000

Variable Cells
Cell Name Original Value Final Value Integer
26.6666666
$F$3 Formula YOLO 0 7 Contin
$G$3 Formula SOLO 0 0 Contin
$H$3 Formula KOLO 0 0 Contin
 Constraints
Cell Name Cell Value Formula Status Slack
$I$4 Labour level of activities 80 $I$4<=$K$4 Binding 0
$I$5 Machine A level of activities 80 $I$5<=$K$5 Not Binding 280
$I$6 Machine B level of activities 266.6666667 $I$6<=$K$6 Not Binding 213.3333333

Microsoft Excel 16.0 Sensitivity Report

Worksheet:
[assignment.xlsx]Sheet4
Report Created: 3/27/2023 10:14:55 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$F$3 Formula YOLO 26.66666667 0 75 1E+30 45
$G$3 Formula SOLO 0 -75 50 75 1E+30
$H$3 Formula KOLO 0 -80 45 80 1E+30

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
Labour level of
$I$4 activities 80 25 80 64 80
Machine A level of
$I$5 activities 80 0 360 1E+30 280
Machine B level of
$I$6 activities 266.6666667 0 480 1E+30 213.3333333

New revenue= RM2000

New optimal production: x = 26.6667
y= 0
z= 0
Question 2
a) You are required to recommend one car model of Perodua. Screenshot and show the car
model and its price from the website provided (https://www.perodua.com.my/).

Car model: Myvi 1.5L AV

Price: RM59,900
b) (i) Calculate the monthly repayment amount of Option A and Option B.
Price of Myvi 1.5L AV+ RM59,900
Down payment= RM1,000 × 12 months= RM12,000
The amount that needs to borrow from the bank= RM59,900- RM12,000= RM47,900

Option A
Principal (p) RM 47,900.00
Nominal Rate ('r) 0.03
Times compounded per annum (m) 12
tenure (t) 7
periodic rate (i) 0.0025
n 84

Pi
C=
1- (1 +i) ^(-n)

47900 × 0.0025
=
1-((1+0.0025) ^ (-84))

= RM632.92

Option B
Principal (p) RM 47,900.00
Nominal Rate ('r) 0.0035
Times compounded per annum (m) 12
tenure (t) 7
periodic rate (i) 0.002916667
n 84
 Pi
C=
1- (1 +i) ^-n

47900 × (0.002916667)
C=
1-(1+(0.002916667) ^ (-84))

C = RM643.77

(ii) Construct the amortization schedule. List the nominal rate, periodic rate and number
of repayments of Option A and Option B.
Option A

Principal (p) RM 47,900.00

Nominal rate (r') 0.03
Times compounded per annum (m) 12
Tenure (t) 7
Periodic rate(i) 0.0025
n 84
C RM 632.92

Contribution to Balance of
Principal Interest p+l Repayment
repay principal principal
RM 47,900.00 RM 119.75 RM 48,019.75 RM 632.92 RM 513.17 RM 47,386.83
RM 47,386.83 RM 118.47 RM 47,505.30 RM 632.92 RM 514.45 RM 46,872.38
RM 46,872.38 RM 117.18 RM 46,989.56 RM 632.92 RM 515.74 RM 46,356.65
RM 46,356.65 RM 115.89 RM 46,472.54 RM 632.92 RM 517.03 RM 45,839.62
RM 45,839.62 RM 114.60 RM 45,954.22 RM 632.92 RM 518.32 RM 45,321.30
RM 45,321.30 RM 113.30 RM 45,434.60 RM 632.92 RM 519.62 RM 44,801.69
RM 44,801.69 RM 112.00 RM 44,913.70 RM 632.92 RM 520.92 RM 44,280.78
RM 44,280.78 RM 110.70 RM 44,391.48 RM 632.92 RM 522.22 RM 43,758.56
RM 43,758.56 RM 109.40 RM 43,867.95 RM 632.92 RM 523.52 RM 43,235.04
RM 43,235.04 RM 108.09 RM 43,343.13 RM 632.92 RM 524.83 RM 42,710.21
RM 42,710.21 RM 106.78 RM 42,816.99 RM 632.92 RM 526.14 RM 42,184.07
RM 42,184.07 RM 105.46 RM 42,289.53 RM 632.92 RM 527.46 RM 41,656.61
RM 41,656.61 RM 104.14 RM 41,760.75 RM 632.92 RM 528.78 RM 41,127.84
RM 41,127.84 RM 102.82 RM 41,230.66 RM 632.92 RM 530.10 RM 40,597.74
RM 40,597.74 RM 101.49 RM 40,699.23 RM 632.92 RM 531.43 RM 40,066.32
RM 40,066.32 RM 100.17 RM 40,166.49 RM 632.92 RM 532.75 RM 39,533.57
RM 39,533.57 RM 98.83 RM 39,632.40 RM 632.92 RM 534.09 RM 38,999.48
RM 38,999.48 RM 97.50 RM 39,096.98 RM 632.92 RM 535.42 RM 38,464.06
RM 38,464.06 RM 96.16 RM 38,560.22 RM 632.92 RM 536.76 RM 37,927.31
RM 37,927.31 RM 94.82 RM 38,022.13 RM 632.92 RM 538.10 RM 37,389.21
RM 37,389.21 RM 93.47 RM 37,482.68 RM 632.92 RM 539.45 RM 36,849.76
RM 36,849.76 RM 92.12 RM 36,941.89 RM 632.92 RM 540.80 RM 36,308.97
RM 36,308.97 RM 90.77 RM 36,399.74 RM 632.92 RM 542.15 RM 35,766.83
RM 35,766.83 RM 89.42 RM 35,856.25 RM 632.92 RM 543.50 RM 35,223.33
RM 35,223.33 RM 88.06 RM 35,311.39 RM 632.92 RM 544.86 RM 34,678.47
RM 34,678.47 RM 86.70 RM 34,765.16 RM 632.92 RM 546.22 RM 34,132.25
RM 34,132.25 RM 85.33 RM 34,217.58 RM 632.92 RM 547.59 RM 33,584.66
RM 33,584.66 RM 83.96 RM 33,668.62 RM 632.92 RM 548.96 RM 33,035.71
RM 33,035.71 RM 82.59 RM 33,118.30 RM 632.92 RM 550.33 RM 32,485.38
RM 32,485.38 RM 81.21 RM 32,566.60 RM 632.92 RM 551.71 RM 31,933.67
RM 31,933.67 RM 79.83 RM 32,013.50 RM 632.92 RM 553.09 RM 31,380.59
RM 31,380.59 RM 78.45 RM 31,459.04 RM 632.92 RM 554.47 RM 30,826.13
RM 30,826.13 RM 77.07 RM 30,903.20 RM 632.92 RM 555.85 RM 30,270.27
RM 30,270.27 RM 75.68 RM 30,345.94 RM 632.92 RM 557.24 RM 29,713.03
RM 29,713.03 RM 74.28 RM 29,787.32 RM 632.92 RM 558.64 RM 29,154.40
RM 29,154.40 RM 72.89 RM 29,227.28 RM 632.92 RM 560.03 RM 28,594.37
RM 28,594.37 RM 71.49 RM 28,665.86 RM 632.92 RM 561.43 RM 28,032.94
RM 28,032.94 RM 70.08 RM 28,103.02 RM 632.92 RM 562.84 RM 27,470.10
RM 27,470.10 RM 68.68 RM 27,538.78 RM 632.92 RM 564.24 RM 26,905.86
RM 26,905.86 RM 67.26 RM 26,973.12 RM 632.92 RM 565.66 RM 26,340.21
RM 26,340.21 RM 65.85 RM 26,406.06 RM 632.92 RM 567.07 RM 25,773.14
RM 25,773.14 RM 64.43 RM 25,837.57 RM 632.92 RM 568.49 RM 25,204.66
RM 25,204.66 RM 63.01 RM 25,267.67 RM 632.92 RM 569.91 RM 24,634.75
RM 24,634.75 RM 61.59 RM 24,696.34 RM 632.92 RM 571.33 RM 24,063.42
RM 24,063.42 RM 60.16 RM 24,123.58 RM 632.92 RM 572.76 RM 23,490.66
RM 23,490.66 RM 58.73 RM 23,549.39 RM 632.92 RM 574.19 RM 22,916.47
RM 22,916.47 RM 57.29 RM 22,973.76 RM 632.92 RM 575.63 RM 22,340.85
RM 22,340.85 RM 55.85 RM 22,396.70 RM 632.92 RM 577.07 RM 21,763.78
RM 21,763.78 RM 54.41 RM 21,818.19 RM 632.92 RM 578.51 RM 21,185.27
RM 21,185.27 RM 52.96 RM 21,238.23 RM 632.92 RM 579.96 RM 20,605.32
RM 20,605.32 RM 51.51 RM 20,656.84 RM 632.92 RM 581.41 RM 20,023.92
RM 20,023.92 RM 50.06 RM 20,073.98 RM 632.92 RM 582.86 RM 19,441.06
RM 19,441.06 RM 48.60 RM 19,489.66 RM 632.92 RM 584.32 RM 18,856.74
RM 18,856.74 RM 47.14 RM 18,903.88 RM 632.92 RM 585.78 RM 18,270.97
RM 18,270.97 RM 45.68 RM 18,316.65 RM 632.92 RM 587.24 RM 17,683.73
RM 17,683.73 RM 44.21 RM 17,727.94 RM 632.92 RM 588.71 RM 17,095.02
RM 17,095.02 RM 42.74 RM 17,137.75 RM 632.92 RM 590.18 RM 16,504.84
RM 16,504.84 RM 41.26 RM 16,546.11 RM 632.92 RM 591.66 RM 15,913.19
RM 15,913.19 RM 39.78 RM 15,952.97 RM 632.92 RM 593.14 RM 15,320.05
 RM 15,320.05 RM 38.30 RM 15,358.35 RM 632.92 RM 594.62 RM 14,725.44
RM 14,725.44 RM 36.81 RM 14,762.25 RM 632.92 RM 596.11 RM 14,129.33
RM 14,129.33 RM 35.32 RM 14,164.66 RM 632.92 RM 597.60 RM 13,531.74
RM 13,531.74 RM 33.83 RM 13,565.57 RM 632.92 RM 599.09 RM 12,932.65
RM 12,932.65 RM 32.33 RM 12,964.98 RM 632.92 RM 600.59 RM 12,332.07
RM 12,332.07 RM 30.83 RM 12,362.90 RM 632.92 RM 602.09 RM 11,729.98
RM 11,729.98 RM 29.32 RM 11,759.30 RM 632.92 RM 603.60 RM 11,126.39
RM 11,126.39 RM 27.82 RM 11,154.21 RM 632.92 RM 605.10 RM 10,521.29
RM 10,521.29 RM 26.30 RM 10,547.59 RM 632.92 RM 606.62 RM 9,914.67
RM 9,914.67 RM 24.79 RM 9,939.46 RM 632.92 RM 608.13 RM 9,306.54
RM 9,306.54 RM 23.27 RM 9,329.81 RM 632.92 RM 609.65 RM 8,696.89
RM 8,696.89 RM 21.74 RM 8,718.63 RM 632.92 RM 611.18 RM 8,085.72
RM 8,085.72 RM 20.21 RM 8,105.93 RM 632.92 RM 612.71 RM 7,473.01
RM 7,473.01 RM 18.68 RM 7,491.69 RM 632.92 RM 614.24 RM 6,858.78
RM 6,858.78 RM 17.15 RM 6,875.93 RM 632.92 RM 615.77 RM 6,243.01
RM 6,243.01 RM 15.61 RM 6,258.62 RM 632.92 RM 617.31 RM 5,625.70
RM 5,625.70 RM 14.06 RM 5,639.76 RM 632.92 RM 618.86 RM 5,006.85
RM 5,006.85 RM 12.52 RM 5,019.37 RM 632.92 RM 620.40 RM 4,386.45
RM 4,386.45 RM 10.97 RM 4,397.42 RM 632.92 RM 621.95 RM 3,764.49
RM 3,764.49 RM 9.41 RM 3,773.90 RM 632.92 RM 623.51 RM 3,140.99
RM 3,140.99 RM 7.85 RM 3,148.84 RM 632.92 RM 625.07 RM 2,515.92
RM 2,515.92 RM 6.29 RM 2,522.21 RM 632.92 RM 626.63 RM 1,889.30
RM 1,889.30 RM 4.72 RM 1,894.02 RM 632.92 RM 628.20 RM 1,261.10
RM 1,261.10 RM 3.15 RM 1,264.26 RM 632.92 RM 629.77 RM 631.35
RM 631.35 RM 1.58 RM 632.92 RM 632.92 RM 631.34 RM 0.00

Option B

Principal (p) RM 47,900.00

Nominal rate (r') 0.035
Times compounded per annum (m) 12
Tenure (t) 7
Periodic rate(i) 0.002916667
n 84
C RM 643.77

Contribution to Balance of
Principal Interest p+l Repayment
repay principal principal
RM 47,900.00 RM 139.71 RM 48,039.71 RM 643.77 RM 504.06 RM 47,395.94
RM 47,395.94 RM 138.24 RM 47,534.18 RM 643.77 RM 505.53 RM 46,890.41
RM 46,890.41 RM 136.76 RM 47,027.17 RM 643.77 RM 507.01 RM 46,383.40
RM 46,383.40 RM 135.28 RM 46,518.69 RM 643.77 RM 508.49 RM 45,874.92
RM 45,874.92 RM 133.80 RM 46,008.72 RM 643.77 RM 509.97 RM 45,364.95
RM 45,364.95 RM 132.31 RM 45,497.26 RM 643.77 RM 511.46 RM 44,853.50
RM 44,853.50 RM 130.82 RM 44,984.32 RM 643.77 RM 512.95 RM 44,340.55
RM 44,340.55 RM 129.33 RM 44,469.88 RM 643.77 RM 514.44 RM 43,826.11
RM 43,826.11 RM 127.83 RM 43,953.94 RM 643.77 RM 515.94 RM 43,310.17
RM 43,310.17 RM 126.32 RM 43,436.49 RM 643.77 RM 517.45 RM 42,792.72
RM 42,792.72 RM 124.81 RM 42,917.53 RM643.77 RM 518.96 RM 42,273.76
RM 42,273.76 RM 123.30 RM 42,397.06 RM 643.77 RM 520.47 RM 41,753.29
RM 41,753.29 RM 121.78 RM 41,875.07 RM 643.77 RM 521.99 RM 41,231.30
RM 41,231.30 RM 120.26 RM 41,351.56 RM 643.77 RM 523.51 RM 40,707.79
RM 40,707.79 RM 118.73 RM 40,826.52 RM 643.77 RM 525.04 RM 40,182.76
RM 40,182.76 RM 117.20 RM 40,299.96 RM 643.77 RM 526.57 RM 39,656.19
RM 39,656.19 RM 115.66 RM 39,771.85 RM 643.77 RM 528.11 RM 39,128.08
RM 39,128.08 RM 114.12 RM 39,242.21 RM 643.77 RM 529.65 RM 38,598.44
RM 38,598.44 RM 112.58 RM 38,711.01 RM 643.77 RM 531.19 RM 38,067.25
RM 38,067.25 RM 111.03 RM 38,178.28 RM 643.77 RM 532.74 RM 37,534.51
RM 37,534.51 RM 109.48 RM 37,643.99 RM 643.77 RM 534.29 RM 37,000.21
RM 37,000.21 RM 107.92 RM 37,108.13 RM 643.77 RM 535.85 RM 36,464.36
RM 36,464.36 RM 106.35 RM 36,570.71 RM 643.77 RM 537.42 RM 35,926.95
RM 35,926.95 RM 104.79 RM 36,031.74 RM 643.77 RM 538.98 RM 35,387.97
RM 35,387.97 RM 103.21 RM 35,491.18 RM 643.77 RM 540.56 RM 34,847.41
RM 34,847.41 RM 101.64 RM 34,949.05 RM 643.77 RM 542.13 RM 34,305.28
RM 34,305.28 RM 100.06 RM 34,405.34 RM 643.77 RM 543.71 RM 33,761.57
RM 33,761.57 RM 98.47 RM 33,860.04 RM 643.77 RM 545.30 RM 33,216.27
RM 33,216.27 RM 96.88 RM 33,313.15 RM 643.77 RM 546.89 RM 32,669.38
RM 32,669.38 RM 95.29 RM 32,764.67 RM 643.77 RM 548.48 RM 32,120.90
RM 32,120.90 RM 93.69 RM 32,214.58 RM 643.77 RM 550.08 RM 31,570.82
RM 31,570.82 RM 92.08 RM 31,662.90 RM 643.77 RM 551.69 RM 31,019.13
RM 31,019.13 RM 90.47 RM 31,109.61 RM 643.77 RM 553.30 RM 30,465.83
RM 30,465.83 RM 88.86 RM 30,554.68 RM 643.77 RM 554.91 RM 29,910.92
RM 29,910.92 RM 87.24 RM 29,998.16 RM 643.77 RM 556.53 RM 29,354.40
RM 29,354.40 RM 85.62 RM 29,440.02 RM 643.77 RM 558.15 RM 28,796.24
RM 28,796.24 RM 83.99 RM 28,880.23 RM 643.77 RM 559.78 RM 28,236.46
RM 28,236.46 RM 82.36 RM 28,318.82 RM 643.77 RM 561.41 RM 27,675.05
RM 27,675.05 RM 80.72 RM 27,755.77 RM 643.77 RM 563.05 RM 27,112.00
RM 27,112.00 RM 79.08 RM 27,191.07 RM 643.77 RM 564.69 RM 26,547.31
RM 26,547.31 RM 77.43 RM 26,624.74 RM 643.77 RM 566.34 RM 25,980.97
RM 25,980.97 RM 75.78 RM 26,056.75 RM 643.77 RM 567.99 RM 25,412.98
RM 25,412.98 RM 74.12 RM 25,487.10 RM 643.77 RM 569.65 RM 24,843.33
RM 24,843.33 RM 72.46 RM 24,915.79 RM 643.77 RM 571.31 RM 24,272.02
RM 24,272.02 RM 70.79 RM 24,342.81 RM 643.77 RM 572.98 RM 23,699.05
RM 23,699.05 RM 69.12 RM 23,768.18 RM 643.77 RM 574.65 RM 23,124.40
RM 23,124.40 RM 67.45 RM 23,191.84 RM 643.77 RM 576.32 RM 22,548.08
RM 22,548.08 RM 65.77 RM 22,613.85 RM 643.77 RM 578.00 RM 21,970.07
RM 21,970.07 RM 64.08 RM 22,034.15 RM 643.77 RM 579.69 RM 21,390.38
RM 21,390.38 RM 62.39 RM 21,452.77 RM 643.77 RM 581.38 RM 20,809.00
RM 20,809.00 RM 60.69 RM 20,869.69 RM 643.77 RM 583.08 RM 20,225.93
RM 20,225.93 RM 58.99 RM 20,284.92 RM 643.77 RM 584.78 RM 19,641.15
RM 19,641.15 RM 57.29 RM 19,698.44 RM 643.77 RM 586.48 RM 19,054.67
RM 19,054.67 RM 55.58 RM 19,110.24 RM 643.77 RM 588.19 RM 18,466.48
RM 18,466.48 RM 53.86 RM 18,520.34 RM 643.77 RM 589.91 RM 17,876.57
RM 17,876.57 RM 52.14 RM 17,928.71 RM 643.77 RM 591.63 RM 17,284.94
RM 17,284.94 RM 50.41 RM 17,335.36 RM 643.77 RM 593.36 RM 16,691.58
RM 16,691.58 RM 48.68 RM 16,740.26 RM 643.77 RM 595.09 RM 16,096.49
RM 16,096.49 RM 46.95 RM 16,143.44 RM 643.77 RM 596.82 RM 15,499.68
RM 15,499.68 RM 45.21 RM 15,544.89 RM 643.77 RM 598.56 RM 14,901.12
RM 14,901.12 RM 43.46 RM 14,944.58 RM 643.77 RM 600.31 RM 14,300.81
RM 14,300.81 RM 41.71 RM 14,342.52 RM 643.77 RM 602.06 RM 13,698.75
RM 13,698.75 RM 39.95 RM 13,738.71 RM 643.77 RM 603.82 RM 13,094.94
RM 13,094.94 RM 38.19 RM 13,133.13 RM 643.77 RM 605.58 RM 12,489.36
RM 12,489.36 RM 36.43 RM 12,525.79 RM 643.77 RM 607.34 RM 11,882.02
RM 11,882.02 RM 34.66 RM 11,916.67 RM 643.77 RM 609.11 RM 11,272.91
RM 11,272.91 RM 32.88 RM 11,305.79 RM 643.77 RM 610.89 RM 10,662.02
RM 10,662.02 RM 31.10 RM 10,693.12 RM 643.77 RM 612.67 RM 10,049.35
RM 10,049.35 RM 29.31 RM 10,078.66 RM 643.77 RM 614.46 RM 9,434.89
RM 9,434.89 RM 27.52 RM 9,462.41 RM 643.77 RM 616.25 RM 8,818.64
RM 8,818.64 RM 25.72 RM 8,844.36 RM 643.77 RM 618.05 RM 8,200.59
RM 8,200.59 RM 23.92 RM 8,224.51 RM 643.77 RM 619.85 RM 7,580.74
RM 7,580.74 RM 22.11 RM 7,602.85 RM 643.77 RM 621.66 RM 6,959.08
RM 6,959.08 RM 20.30 RM 6,979.38 RM 643.77 RM 623.47 RM 6,335.61
RM 6,335.61 RM 18.48 RM 6,354.08 RM 643.77 RM 625.29 RM 5,710.32
RM 5,710.32 RM 16.66 RM 5,726.98 RM 643.77 RM 627.11 RM 5,083.21
RM 5,083.21 RM 14.83 RM 5,098.04 RM 643.77 RM 628.94 RM 4,454.26
RM 4,454.26 RM 12.99 RM 4,467.25 RM 643.77 RM 630.78 RM 3,823.48
RM 3,823.48 RM 11.15 RM 3,834.63 RM 643.77 RM 632.62 RM 3,190.87
RM 3,190.87 RM 9.31 RM 3,200.18 RM 643.77 RM 634.46 RM 2,556.41
RM 2,556.41 RM 7.46 RM 2,563.86 RM 643.77 RM 636.31 RM 1,920.10
RM 1,920.10 RM 5.60 RM 1,925.70 RM 643.77 RM 638.17 RM 1,281.93
RM 1,281.93 RM 3.74 RM 1,285.67 RM 643.77 RM 640.03 RM 641.90
RM 641.90 RM 1.87 RM 643.77 RM 643.77 RM 641.90 RM 0.00
(iii) What is the total repayment of Option A and Option B?
Option A
Total repayment= RM632.92 × 84
= RM 53165.28
Option B
Total repayment= RM643.77 × 84
= RM 54076.68

(iv) What is the total interest of Option A and Option B?

Option A
Total interest =(RM632.92) (84)-RM47,900.00
= RM5265.28
Option B
Total interest = (RM643.77) (84)- RM47,900.00
= RM 6176.68

c) Using the information in (b), which option you would recommend to Alex? Explain.
Question 3
a) Calculate the net cash flows of both projects.
b) Assume that the discount rate is 15% for both projects, what are the Net Present Values
(NPVs) of both projects?
c) As a project consultant, comment on both projects and recommend a project to
Company Wingsley. Justify your recommendations.