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A car manufacturer is considering the purchase of an industrial robot for assembling cars. An employee who does the same tasks as the robot would
A car manufacturer is considering the purchase of an industrial robot for assembling cars. An employee who does the same tasks as the robot would do costs the company $ in wages and benefits this year. Those costs are expected to increase by annually over the next years. A robot would cost $ which includes initial purchase, installation, and training costs. The robot would cost $ to operate in its first year, and costs are expected to increase by $ each year. The company expects to be able to sell the robot at the end of years for a salvage value of $ If the company can earn on its funds, then should the company purchase the robot? Of course, use calculations to justify your answer.
A car manufacturer is considering the purchase of an industrial robot for assembling cars. An employee who does the same tasks as the robot would do costs the company $ in wages and benefits this year. Those costs are expected to increase by annually over the next years. A robot would cost $ which includes initial purchase, installation, and training costs. The robot would cost $ to operate in its first year, and costs are expected to increase by $ each year. The company expects to be able to sell the robot at the end of years for a salvage value of $ If the company can earn on its funds, then should the company purchase the robot? Of course, use calculations to justify your answer.
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