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An industrial engineer at Robots manufacturing company is considering replacing robot X by robot Y to reduce costs in a production line. Robot X has

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An industrial engineer at Robots manufacturing company is considering replacing robot X by robot Y to reduce costs in a production line. Robot X has a market value of $82,000 now, an annual maintenance and operation (M&O) cost of $33,000, and salvage values of $50,000, $42,000, and $35,000 after 1, 2, and 3 years from now, respectively. Robot Y will have a first cost of $97,000, an annual M&O cost of $25,000, and salvage values of $60,000, $51,000, and $42,000 after 1, 2, and 3 years, respectively. Which robot should be selected if a 2-year study period is specified at an interest rate of 15% per year! O Do not replace robot X by robot Y O Robot X with AWX = $ + 63,905 Robot Y with AWY = $ + 60,946 O Robot Y with AWY = $ - 60,946 O Robot X with AWX = $ - 63,905 The cost characteristics of a testing machine are shown in the table. The cost of a new machine is $100,000. The equation for determining the AW of keeping the testing machine for 2 years is: Machine Age, Years 1 2 3 4 5 6 M&O Costs, Sper Year - 42.000 47.000 - 49.000 - 50,000 52.000 - 54.000 Salvage Valt at End of Year, S 60,000 40,000 31.000 24,000 15.000 10.000 O AW = -100,000 A/PI, 2) - 42,000 + 40,000( A/Fi, 2)(c) O AW =-100,000( A/PI, 2)) + 47,000 + 40,000(A/F1,2) O AW = -100,000( A/PI, 6) - [42,000( P/EI, 1) + 47,000( P/F1,2)(A/P.1,6) + 40,000( A/Fi, 6) O AW = -100,000( A/PI, 2) - 47,000 + 40,000(A/F1,2) O AW = -100,000(A/PI.2) - [42,000(P/Ei, 1) + 47,000( P/Fi, 2)](A/PI.2) + 40,000(A/F1,2)

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