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A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot
A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $78,000, an annual M&O cost of $31,000, and $43,000 salvage value, and it will Improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $122,000 per year. The company's MARR Is 49% per year, and It uses a 3-year study period for economic evaluations. Calculate the Incremental ROR, and Identify the robot the manager should select. The Incremental ROR Is The manager should select robot X v
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