4-83 Eddie is a production engineer for a major supplier of component parts for cars. He has determined that a robot can be installed on the production line to replace one employee. The employeee earns $20 per hour and benefits worth $8 per hour for a total annual cost of $58,240 this year. Eddie estimates this cost will increase 6% each year. The robot will cost $16,500 to operate for the first year with costs increasing by $1,500 each year. The firm uses an interest rate of 15% and a 10-year planning horizon. The robot costs $75,000 installed and will have a salvage value of $5,000 after 10 years. Should Eddie recommend that purchase of the robot? Can you please answer this using compound interest factors (single payment, uniform payment series, arithmetic gradient)? The correct answer should be $360,654 for the robot.