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&0 cost of $27,000, and a $50,000 salvage value. Analyse which should be selected on the basis of a future worth comparison at an interest rate of 15% per year using a 3-year study period.
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&0 cost of $27,000, and a $50,000 salvage value. Analyse which should be selected on the basis of a future worth comparison at an interest rate of 15% per year using a 3-year study period.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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