2. [5 points] Lannister's Job shop is looking to upgrade its current operation. Currently assemblies are created by hand but they want to move to an automated machine. This change would improve productivity and throughput. Jamie Lannister has identified several potential models to consider and has asked his very intelligent brother Tyrion for his help. The investments and other operating costs have summarized below. Assume that MARR: 10%, Which model should Tyrion and Jamie consider as most economical, based on the rate of return principle? Cost of Labor: $8.10/hr. Service Life of new equipment (all models): 20 years L Labor Hours Required per year Labor Cost Power Cost Initial Investment Salvage Value Current (Manual) | Model A 320 160 $2592 $1296 $400 $4,000 $400 Model B | Model C 107 80 $867 $648 $420 $480 6,000 7,000 $600 $700