Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. An existing robot is used in a commercial material laboratory to handle ceramic samples in the high-temperature environment that is part of several test

image text in transcribedimage text in transcribedimage text in transcribed

3. An existing robot is used in a commercial material laboratory to handle ceramic samples in the high-temperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $1,800. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm's before-tax MARR is 15% per year. Based on this information, should the existing robot be replaced? Assume that a robot will be needed for an indefinite period. 3 Click the icon to view the data for the Defender and the Challenger. * Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when MARR = 15% p The AW value for Defender is $ . (Round to the nearest dollar.) The AW value for Challenger is $ (Round to the nearest dollar.) The defender should be (1) - 3: More Info Current MV Upgrade cost (year 0) Annual expenses Defender $38,900 $1,800 $1,200 in year one, and increasing at the rate of 6% per year thereafter Useful life (years) MV at end of useful life Purchase price Installation cost Annual expenses Useful life (years) MV at end of useful life - $1,500 Challenger $53,000 $5,800 $900 in year one, and increasing by $200 per year thereafter 10 $7,000 4: More Info Discrete Compounding; i = 6% Single Payment Uniform Series Compound Compound Capital Amount Present Amount Present Sinking Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P F/P P/F FIA P/A A/F A/P 1.0600 1.0600 1.0000 0.9434 1.0000 1.0600 1.1236 0.8900 2.0600 1.8334 0.4854 0.5454 1.1910 0.8396 3.1836 2.6730 0.3141 0.3741 1.2625 0.7921 4.3746 3.4651 0.2286 0.2886 1.3382 0.7473 5.6371 4.2124 0.1774 0.2374 1.4185 0.7050 6.9753 4.9173 0.1434 0.2034 1.5036 0.6651 8.3938 5.5824 0.1191 0.1791 1.5938 0.6274 9.8975 6.2098 0.1010 0.1610 1.6895 0.5919 11.4913 6.8017 0.0870 0.1470 1.7908 0.5584 13.1808 7.3601 0.0759 0.1359 1.8983 0.5268 14.9716 7.8869 0.0668 0.1268 2.0122 0.4970 16.8699 8.3838 0.0593 0.1193 2.1329 0.4688 18.8821 8.8527 0.0530 0.1130 2.2609 0.4423 21.0151 9.2950 0.0476 0.1076 2.3966 0.4173 23.2760 9.7122 0.0430 0.1030 Discrete Compounding; i= 15% Uniform Series Single Payment Compound Amount Factor To Find F Given P F/P 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 voloncessos Present Worth Factor To Find P Given F P/F 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 Compound Amount Factor To Find F Given A FIA 1.0000 2.1500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 Present Worth Factor To Find P Given A P/A 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4651 0.2880 0.2003 0.1483 0.1142 0.0904 0.0729 0.0596 0.0493 0.0411 0.0345 0.0291 0.0247 0.0210 Uniform Gradier Gradient Gradi Present Unifo Worth Serie Factor Fact To Find P To Fin Given G Giver P/G AN 0.0000 0.00 0.7561 0.46 2.0712 0.90 3.7864 1.32 5.7751 1.72 7.9368 2.09 10.1924 2.44 12.4807 2.78 14.7548 3.09 16.9795 19.1289 21.1849 3.90 23.1352 4.14 24.9725 4.36 26.6930 4.56 Capital Recovery Factor To Find A Given P A/P 1. 1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.1911 0.1845 0.1791 0.1747 0.1710 3.38 3.65 (1) O O replaced retained 3. An existing robot is used in a commercial material laboratory to handle ceramic samples in the high-temperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $1,800. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm's before-tax MARR is 15% per year. Based on this information, should the existing robot be replaced? Assume that a robot will be needed for an indefinite period. 3 Click the icon to view the data for the Defender and the Challenger. * Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when MARR = 15% p The AW value for Defender is $ . (Round to the nearest dollar.) The AW value for Challenger is $ (Round to the nearest dollar.) The defender should be (1) - 3: More Info Current MV Upgrade cost (year 0) Annual expenses Defender $38,900 $1,800 $1,200 in year one, and increasing at the rate of 6% per year thereafter Useful life (years) MV at end of useful life Purchase price Installation cost Annual expenses Useful life (years) MV at end of useful life - $1,500 Challenger $53,000 $5,800 $900 in year one, and increasing by $200 per year thereafter 10 $7,000 4: More Info Discrete Compounding; i = 6% Single Payment Uniform Series Compound Compound Capital Amount Present Amount Present Sinking Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P F/P P/F FIA P/A A/F A/P 1.0600 1.0600 1.0000 0.9434 1.0000 1.0600 1.1236 0.8900 2.0600 1.8334 0.4854 0.5454 1.1910 0.8396 3.1836 2.6730 0.3141 0.3741 1.2625 0.7921 4.3746 3.4651 0.2286 0.2886 1.3382 0.7473 5.6371 4.2124 0.1774 0.2374 1.4185 0.7050 6.9753 4.9173 0.1434 0.2034 1.5036 0.6651 8.3938 5.5824 0.1191 0.1791 1.5938 0.6274 9.8975 6.2098 0.1010 0.1610 1.6895 0.5919 11.4913 6.8017 0.0870 0.1470 1.7908 0.5584 13.1808 7.3601 0.0759 0.1359 1.8983 0.5268 14.9716 7.8869 0.0668 0.1268 2.0122 0.4970 16.8699 8.3838 0.0593 0.1193 2.1329 0.4688 18.8821 8.8527 0.0530 0.1130 2.2609 0.4423 21.0151 9.2950 0.0476 0.1076 2.3966 0.4173 23.2760 9.7122 0.0430 0.1030 Discrete Compounding; i= 15% Uniform Series Single Payment Compound Amount Factor To Find F Given P F/P 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 voloncessos Present Worth Factor To Find P Given F P/F 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.2149 0.1869 0.1625 0.1413 0.1229 Compound Amount Factor To Find F Given A FIA 1.0000 2.1500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 24.3493 29.0017 34.3519 40.5047 47.5804 Present Worth Factor To Find P Given A P/A 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4651 0.2880 0.2003 0.1483 0.1142 0.0904 0.0729 0.0596 0.0493 0.0411 0.0345 0.0291 0.0247 0.0210 Uniform Gradier Gradient Gradi Present Unifo Worth Serie Factor Fact To Find P To Fin Given G Giver P/G AN 0.0000 0.00 0.7561 0.46 2.0712 0.90 3.7864 1.32 5.7751 1.72 7.9368 2.09 10.1924 2.44 12.4807 2.78 14.7548 3.09 16.9795 19.1289 21.1849 3.90 23.1352 4.14 24.9725 4.36 26.6930 4.56 Capital Recovery Factor To Find A Given P A/P 1. 1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 0.1911 0.1845 0.1791 0.1747 0.1710 3.38 3.65 (1) O O replaced retained

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance The Core

Authors: Jonathan Berk, Peter DeMarzo

4th Global Edition

1292158336, 9781292158334

Students also viewed these Finance questions