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A factory is considering two robots for purchase by a fiber-optic manufacturing company. Robot X will have a first cost of KD80,000, an annual maintenance

  1. A factory is considering two robots for purchase by a fiber-optic manufacturing company. Robot X will have a first cost of KD80,000, an annual maintenance and operation (M&O) cost of KD30,000, and a KD40,000 salvage value. Robot Y will have a first cost of KD97,000, an annual M&O cost of KD27,000, and a KD50,000 salvage value. Which should be selected on the basis of a present worth comparison at an interest rate of 12% per year? Use a 3-year study period.

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