11. 4.15 A new family of small robots are available that have a compact footprint and a large work envelope that provides ease of use and short cycle times. Two are under consideration as part of a process to manufacture blowdown control valves for cooling towers. Process X costs $80,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this robot will be $30,000 in year 1, increasing by $4000 each year. Process Y will have a first cost of

$120,000, an operating cost of $8000 in year 1, increasing by $6500 each year, and a $40,000 salvage value after its 3-year life. At an interest rate of 12% per year, which process should be used on the basis of a present worth analysis?