Q2: A robot arm which costs RM X to purchase and will provide RM Y benefits for each year. The company Matsushita Corp plans to use the robot arm for n years and after that scrap it with RM Z. The MARR is 12%, should the company purchase the robot?
Q2: A robot arm which costs RM X to purchase and will provide RM Y benefits for each year. The company Matsushita Corp plans to use the robot arm for n years and after that scrap it with RM Z. The MARR is 12%, should the company purchase the robot?
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Q2: A robot arm which costs RM X to purchase and will provide RM Y benefits for
each year.
The company Matsushita Corp plans to use the robot arm for n years and after that
scrap it with RM Z. The MARR is 12%, should the company purchase the robot?
Matrix Number end X
with:
1,6
2,7
3,8
4,9
0
Y
n
200K 13
11
210K 12
11
14
980K
950K 210K
1000K
880K
215K
900K 198K
MARR(
%)
12
10
12
15
13
Scrap
Z
20K
20K
18K
22K
15K
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