31. Autobot Systems Inc. Is evaluating three robot proposals for use in its assembly line. Information regarding these proposals are as follows: Robot 1 Robot 2 Robot 3 Initial Cost P2 000 000.00 P3 000 000.00 P1 500 000.00 Annual Operating Cost 150 000.00 200 000.00 100 000.00 Annual Savings 1 200 000.00 1 300 000.00 1 200 000.00 Useful Life, years 3 6 2 Assuming a salvage value of 10% and a 17% MARR, determine which robot should be preferred using AW analysis. (Ans. AT1=P201 367.37; AT2=P296 740.03; AT3=P222 880.18; select robot 2)
31. Autobot Systems Inc. Is evaluating three robot proposals for use in its assembly line. Information regarding these proposals are as follows: Robot 1 Robot 2 Robot 3 Initial Cost P2 000 000.00 P3 000 000.00 P1 500 000.00 Annual Operating Cost 150 000.00 200 000.00 100 000.00 Annual Savings 1 200 000.00 1 300 000.00 1 200 000.00 Useful Life, years 3 6 2 Assuming a salvage value of 10% and a 17% MARR, determine which robot should be preferred using AW analysis. (Ans. AT1=P201 367.37; AT2=P296 740.03; AT3=P222 880.18; select robot 2)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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31. Autobot Systems Inc. Is evaluating three robot proposals for use in its assembly line. Information regarding these proposals are as follows:
|
Robot 1 |
Robot 2 |
Robot 3 |
Initial Cost |
P2 000 000.00 |
P3 000 000.00 |
P1 500 000.00 |
Annual Operating Cost |
150 000.00 |
200 000.00 |
100 000.00 |
Annual Savings |
1 200 000.00 |
1 300 000.00 |
1 200 000.00 |
Useful Life, years |
3 |
6 |
2 |
Assuming a salvage value of 10% and a 17% MARR, determine which robot should be preferred using AW analysis.
(Ans. AT1=P201 367.37; AT2=P296 740.03; AT3=P222 880.18; select robot 2)
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