Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A robot has just been installed at a cost of $81,000. Due to working in hazardous conditions, it will have a negative salvage value (disposal

image text in transcribed

A robot has just been installed at a cost of $81,000. Due to working in hazardous conditions, it will have a negative salvage value (disposal fee) of $10,000 at the end of its useful life in 10 years. It has the following estimates and probabilities for yearly savings: Savings per year $19,000 $22,000 $25,000 Probability 0.2 0.7 0.1 Part a What is the expected value of the yearly savings? Part b - Draw the cash flow diagram and set up the problem to compute the rate of return for this investment. Part c-if the MARR for the company is 15%, is this a good investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Writing A For Accountants

Authors: Claire B. May, Gordon S. May

9th Edition

0132567245, 9780132567244

More Books

Students also viewed these Accounting questions

Question

identify the main types of research studies in HRM research;

Answered: 1 week ago

Question

decide what data to gather and when;

Answered: 1 week ago