A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $37.000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $127,000 per year. The company's MARR is 16% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select The incremental ROR is 17 1%. The manager should select robot Y Ⓒ
A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $37.000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $127,000 per year. The company's MARR is 16% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select The incremental ROR is 17 1%. The manager should select robot Y Ⓒ
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
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Transcribed Image Text:A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings
that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $37,000 salvage
value, and it will improve revenues by $96,000 per year, Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and
$47.000 salvage value, and it will increase revenues by $127,000 per year. The company's MARR is 16% per year, and it uses a 3-year
study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select
The incremental ROR is
The manager should select robot
17 %.
Y ♥
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