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
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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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
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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