A warchouse manager is evaluating 2 different robotic systems to be installed in his warehouse. Using the present worth analysis, determine which is the economically better system if MARR is 12% per year compounded monthly. Justify your answer. Initial cost, RM Maintenance cost, RM per month Semi-annual maintenance cost, RM per 6-month Salvage value after 5 years, RM System A System B - 40,000 - 60,000 - 5,000 - 13,000 8,000 10,000

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A warehouse manager is evaluating 2 different robotic systems to be installed in his
warehouse. Using the present worth analysis, determine which is the economically
better system if MARR is 12% per year compounded monthly. Justify your answer.
System A System B
- 40,000 -60,000
- 5,000
Initial cost, RM
Maintenance cost, RM per month
Semi-annual maintenance cost, RM per 6-month
Salvage value after 5 years, RM
- 13,000
8,000
10,000
Transcribed Image Text:A warehouse manager is evaluating 2 different robotic systems to be installed in his warehouse. Using the present worth analysis, determine which is the economically better system if MARR is 12% per year compounded monthly. Justify your answer. System A System B - 40,000 -60,000 - 5,000 Initial cost, RM Maintenance cost, RM per month Semi-annual maintenance cost, RM per 6-month Salvage value after 5 years, RM - 13,000 8,000 10,000
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