4 A process control manager is considering two robots to improve materlais-handling capacity in the production of rigid shat couplings that make dissimilar dive components. Robot X has a first cost of S88.000, an annual M&O cost of $31.000, and $42.000 salvage value, and it will mprove reverues by S96,000 per year. Robot Y hes a first cost of $146,000. an anmual M&O cost ofS28,000. and $47,000 salvage value, and it will increase revenues by S127000 per year. The company's MARR is 31% per year, and it uses a 3 year study perlod for economic evaluations. Calculate the incremental ROR, anc identify the robot the manager should select. The incremental ROR is2013 %. The manager should select robot Y eek
4 A process control manager is considering two robots to improve materlais-handling capacity in the production of rigid shat couplings that make dissimilar dive components. Robot X has a first cost of S88.000, an annual M&O cost of $31.000, and $42.000 salvage value, and it will mprove reverues by S96,000 per year. Robot Y hes a first cost of $146,000. an anmual M&O cost ofS28,000. and $47,000 salvage value, and it will increase revenues by S127000 per year. The company's MARR is 31% per year, and it uses a 3 year study perlod for economic evaluations. Calculate the incremental ROR, anc identify the robot the manager should select. The incremental ROR is2013 %. The manager should select robot Y eek
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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