4. An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing company. Robot X will have a first cost of $80,000, an annual maintenance and operation (M&O) cost of $30,000, and a $40,000 salvage value. Robot Y will have a first cost of $97,000, an annual M&O cost of $27,000, and a $50,000 salvage value. Which should be selected on the basis of a future worth comparison at an interest rate of 15% per year? Use a 3-year study period.

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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4. An industrial engineer is considering two robots for purchase by a fiber-optic
manufacturing company. Robot X will have a first cost of $80,000, an annual
maintenance and operation (M&O) cost of $30,000, and a $40,000 salvage
value. Robot Y will have a first cost of $97,000, an annual M&O cost of
$27,000, and a $50,000 salvage value. Which should be selected on the
basis of a future worth comparison at an interest rate of 15% per year? Use
a 3-year study period.
Transcribed Image Text:4. An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing company. Robot X will have a first cost of $80,000, an annual maintenance and operation (M&O) cost of $30,000, and a $40,000 salvage value. Robot Y will have a first cost of $97,000, an annual M&O cost of $27,000, and a $50,000 salvage value. Which should be selected on the basis of a future worth comparison at an interest rate of 15% per year? Use a 3-year study period.
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