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6. Athens Corporation (AC), a small engineering firm in the Clarke county area uses technicians to assemble its products. AC currently has Ten technicians. Each

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6. Athens Corporation (AC), a small engineering firm in the Clarke county area uses technicians to assemble its products. AC currently has Ten technicians. Each year, AC spends the following on each technician: Basic salary= $35,000; Company paid life insurance= $5000, Company paid health insurance = $7000, Company paid retirement support (401k) = 12.5% of basic salary. To downsides, AC decided to replace two of its technicians with a robot. AC is planning to buy the robot and recover the loan in 10 years. AC uses an interest rate (Minimum Attractive Rate of Return-MARR) of 6% for all their investments. i. Draw a CFD showing all the numbers (the MARR, the annual benefits, P- the initial investment, and years of operations) ii. How much should AC buy this Robot, $P, to justify the purchase over the ten year period? iii. AC is also considering a second Alternative, Robot-X. Robot-X costs $8 million. If they buy this robot with the option to recover in 15 years, how many technicians can they let go? 6. Athens Corporation (AC), a small engineering firm in the Clarke county area uses technicians to assemble its products. AC currently has Ten technicians. Each year, AC spends the following on each technician: Basic salary= $35,000; Company paid life insurance= $5000, Company paid health insurance = $7000, Company paid retirement support (401k) = 12.5% of basic salary. To downsides, AC decided to replace two of its technicians with a robot. AC is planning to buy the robot and recover the loan in 10 years. AC uses an interest rate (Minimum Attractive Rate of Return-MARR) of 6% for all their investments. i. Draw a CFD showing all the numbers (the MARR, the annual benefits, P- the initial investment, and years of operations) ii. How much should AC buy this Robot, $P, to justify the purchase over the ten year period? iii. AC is also considering a second Alternative, Robot-X. Robot-X costs $8 million. If they buy this robot with the option to recover in 15 years, how many technicians can they let go

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