A variety of robots have been featured at the National Restaurant Show that can be used for a (Click the icon to view additional information.) variety of tasks in restaurants. These robots were introduced at the same time that an ongoing debate ensued in the United States about the merits of a national minimum wage of $15 per Read the hour for every worker. More info Requirements A former French Fry King USA CEO, Carl Robson, said that purchasing 1. What would the payback period be on a French Fry King robot used for a $40,000 robotic arm would be cheaper than paying fast-food workers food preparation? (Round to the nearest two decimal places.) $15 per hour for food preparation tasks like bagging french fries. 2. What qualitative factors would French Fry King need to consider when To test the former CEO's assertion using a hypothetical example, make deciding whether to purchase robots to replace some of its food the following assumptions: preparation workers? a. For the cost of the hourly workers, use a total wage rate of $18 per 3. Given the payback period, would net present value (NPV) or internal rate of hour to reflect payroll taxes (the hourly wage rate used here is return (IRR) be likely to be useful tools for analyzing this decision? Support 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 $4,500. c. The robot will require annual maintenance service. Assume an annual service contract is required that costs 10% of the original robot cost including the original freight/installation. d. Assume that the robot will replace 9 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 $1,100 per year. 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.) ==Paybackperiodyears A variety of robots have been featured at the National Restaurant Show that can be used for a (Click the icon to view additional information.) variety of tasks in restaurants. These robots were introduced at the same time that an ongoing debate ensued in the United States about the merits of a national minimum wage of $15 per Read the hour for every worker. More info Requirements A former French Fry King USA CEO, Carl Robson, said that purchasing 1. What would the payback period be on a French Fry King robot used for a $40,000 robotic arm would be cheaper than paying fast-food workers food preparation? (Round to the nearest two decimal places.) $15 per hour for food preparation tasks like bagging french fries. 2. What qualitative factors would French Fry King need to consider when To test the former CEO's assertion using a hypothetical example, make deciding whether to purchase robots to replace some of its food the following assumptions: preparation workers? a. For the cost of the hourly workers, use a total wage rate of $18 per 3. Given the payback period, would net present value (NPV) or internal rate of hour to reflect payroll taxes (the hourly wage rate used here is return (IRR) be likely to be useful tools for analyzing this decision? Support 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 $4,500. c. The robot will require annual maintenance service. Assume an annual service contract is required that costs 10% of the original robot cost including the original freight/installation. d. Assume that the robot will replace 9 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 $1,100 per year. 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.) ==Paybackperiodyears
