An existing robot can be kept if $1,800 is spent now to upgrade it for future service requirements.Alternatively, the company can purchase a new robot to replace the old robot. The following estimates have been developed for both the defender and the challenger. Thecompany's before-tax MARR is 20% per year. Based on thisinformation, should the existing robot be replaced rightnow? Assume the robot will be needed for an indefinite period of time.

An existing robot can be kept if $1,800 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. The following estimates have been developed for both the defender and the challenger. The company's before-tax MARR is 20% per year. Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time Defender Challenger Current MV $37,000 Purchase price $53,000 Required upgrade $1,800 Installation cost $5,700 Annual expenses $1,200 Annual expenses $900 Remaining useful life 6 years Useful life 10 years MV at end of useful life - $1,400 MV at end of useful life $6,000 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year. The AW value of the defender is $ . (Round to the nearest dollar.) The AW value of the challenger is $ . (Round to the nearest dollar.) The existing robot be replaced right now. should not shouldi More Info X Discrete Compounding; i = 20% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N F/P P/F F/A P/A A/F A/P 1.2000 0.8333 1.0000 0.8333 1.0000 1.2000 1.4400 0.6944 2.2000 1.5278 0.4545 0.6545 1.7280 0.5787 3.6400 2.1065 0.2747 0.4747 2.0736 0.4823 5.3680 2.5887 0.1863 0.3863 2.4883 0.4019 7.4416 2.9906 0.1344 0.3344 2.9860 0.3349 9.9299 3.3255 0.1007 0.3007 3.5832 0.2791 12.9159 3.6046 0.0774 0.2774 4.2998 0.2326 16.4991 3.8372 0.0606 0.2606 5.1598 0. 1938 20.7989 4.0310 0.0481 0.2481 6.1917 0.1615 25.9587 4. 1925 0.0385 0.2385 Print Done