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( 5 points ) On a certain assembly line in a plant, one of the tasks is to lift a part from a conveyor and
points On a certain assembly line in a plant, one of the tasks is to lift a part from a conveyor and place it in a fixture for a welding process. Currently a lowskill laborer who costs the plant $ month to employ paid at the end of each month performs this task. You are considering replacing this laborer with a robot that will cost the plant $ to purchase and install. You estimate the salvage value of the robot to be $ whenever the plant stops using it regardless of how long it is used The robot is so reliable and robust that you do not plan on having any cost for its upkeep.
In order to help you evaluate how good this investment might be you want to determine how long it will take to "break even," ie how long it will take for the future value of the proposed investment to be the same as the future value of employing the laborer
Assuming an annual interest rate of compounded monthly, the amount of time it will take to "break even" is closest to:
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