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A medium sized assembly plant is considering re-designing one of its assembly stations. The station is currently being performed by two assembly labors. Due to

A medium sized assembly plant is considering re-designing one of its assembly stations. The station is currently being performed by two assembly labors. Due to the complexity of the task, full automating the assembly station is not achievable. However, it is possible to replace one of the two labour workers with a collaborative robot that can work safely along with other worker. the plant has a MARR of 7%. The table below summarizes the cost for one labor and cost for one collaborative robot. use information in the table to answer the following questions.

Labour worker Collaborative Robot
Purchase price of collaborative robot $90,000
Robot installation & first time programming cost $10000
Labor worker salary per year ,$30000
benefits for labour per year $2000
Cost of robot re-programming/maintenance $8000
Planning horizon 5 years

a) if the assembly operation is to be reprogrammed every year, is it an economic decision to replace one labour with collaborative robot?? (Note:Use Annual worth)

b)if the assembly operation is to be reprogrammed every2year, is it an economic decision to replace one labour with collaborative robot?? (Note:Use Annual worth)

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