7. Eddie is a production engineer for a major supplier of component parts for cars. determined that a robot can be installed on the production line to replace o employee on the production line 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 $1500 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 $5000 after 10 years. Should Eddie recommend that purchase of the robot? (Newnan|4-83) He has ne employee Answer: The robot is the cheaper alternative (PW for Cost of Robot is $182,046. PW for Personnel savings from use of robot: $360,654 Recommendation: Your approach should include the use of the equal payment series formula, the linear and the geometric gradient series formulas