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An existing robot can be kept if $2,300 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new
An existing robot can be kept if $2,300 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 defende and the challenger. The company's before-tax MARR is 12% 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 $40,000 Purchase price $53,000 Required upgrade $2,300 Installation cost $5,300 Annual expenses $1,500 Annual expenses $1,000 Remaining useful life 6 years Useful life 9 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 12% 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
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