Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started