Faced with rising pressure for a $15 per hour minimum wage rate, the farming industry is currently
Question:
1. One Lettuce Bot would do the work of 20 farm workers.
2. Each farm worker typically works 40 hours on the lettuce thinning process each year.
3. Each farm worker would earn $15 per hour plus 7.65% payroll tax.
4. The Lettuce Bot is estimated to cost $8,000 plus $500 for delivery.
5. Annual costs of operating the Lettuce Bot are expected to be $1,500.
While the Lettuce Bot itself may be in workable condition for up to five years, assume that the farm would view its implementation as a one-year experiment.
Requirement
Perform a cost-benefit analysis for the first year of implementation to determine whether the Lettuce Bot would be a financially viable investment if the minimum wage is raised to $15 per hour
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