A variety of robots have been feabred at the National Restaurant Show that can be used for a variety of tasks in restaurants. These robots wote introduced at the same time that an ongoing debase ensued in the Uniled Siates about the merits of a national minimum wage of $15 per hour for overy worker. Requirement 1. What would the payback period be on a French Fry King robot used for food preparation? (Round your answer to two decimal places.) -Paybackperiod=years Requirement 2 . What qualitative factors would French Fry King need to consider when deciding whether to purchase robots to replace scme of is food preparation workers? (Seiect onf those that apply if an input field is not used in the table, leave the input field emply, do not select a label) Qualitative factors to consider include: Requirement 3. Given the paybock period, would net prosent value (NPV) of intemal rate of fetum ((RRR) be ikely to be useful tools for anayging this decision? Support your reaponse. for analyzing this decision since More info A former French Fry King USA CEO, Lou Ferris, said that purchasing a $40,000 robotic arm would be cheaper than paying fast-food workers $15 per hour for food preparation tasks like bagging french fries. To test the former CEO's assertion using a hypothetical example, make the following assumptions: a. For the cost of the hourly workers, use a total wage rate of $18 per hour to reflect payroll taxes (the hourly wage rate used here is higher than $15 since payroll taxes can add 15% or more to the hourly wage rate). b. Assume that freight and installation for the robot's initial placement in a French Fry King restaurant will be a one-time cost of $5,100. c. The robot will require annual maintenance service. Assume an annual service contract is required that costs 5% of the original robot cost including the original freight/installation. d. Assume that the robot will replace 8 employee hours per day, 360 days per year (the robot will not, at least initially, be as versatile as a person and cannot fully eliminate all food prep workers at this point). e. Electricity and supplies consumed by the robot will be assumed to be $1,700 per year. A variety of robots have been feabred at the National Restaurant Show that can be used for a variety of tasks in restaurants. These robots wote introduced at the same time that an ongoing debase ensued in the Uniled Siates about the merits of a national minimum wage of $15 per hour for overy worker. Requirement 1. What would the payback period be on a French Fry King robot used for food preparation? (Round your answer to two decimal places.) -Paybackperiod=years Requirement 2 . What qualitative factors would French Fry King need to consider when deciding whether to purchase robots to replace scme of is food preparation workers? (Seiect onf those that apply if an input field is not used in the table, leave the input field emply, do not select a label) Qualitative factors to consider include: Requirement 3. Given the paybock period, would net prosent value (NPV) of intemal rate of fetum ((RRR) be ikely to be useful tools for anayging this decision? Support your reaponse. for analyzing this decision since More info A former French Fry King USA CEO, Lou Ferris, said that purchasing a $40,000 robotic arm would be cheaper than paying fast-food workers $15 per hour for food preparation tasks like bagging french fries. To test the former CEO's assertion using a hypothetical example, make the following assumptions: a. For the cost of the hourly workers, use a total wage rate of $18 per hour to reflect payroll taxes (the hourly wage rate used here is higher than $15 since payroll taxes can add 15% or more to the hourly wage rate). b. Assume that freight and installation for the robot's initial placement in a French Fry King restaurant will be a one-time cost of $5,100. c. The robot will require annual maintenance service. Assume an annual service contract is required that costs 5% of the original robot cost including the original freight/installation. d. Assume that the robot will replace 8 employee hours per day, 360 days per year (the robot will not, at least initially, be as versatile as a person and cannot fully eliminate all food prep workers at this point). e. Electricity and supplies consumed by the robot will be assumed to be $1,700 per year
