An industrial engineer is considering two robots for improving efficiency in a fibre-optic manufacturing company. Robot X will have a first cost of RM86000, an annual maintenance and operation (M&O) cost of RM32000, and a RM35000 salvage value after its useful life of 4 years. A more sophisticated Robot Y will have a first cost of RM157000, an annual M&O cost of RM32900, and a RM55000 salvage value after its 4 year life. Which should be selected on the basis of a present worth comparison at an interest rate of 7% per year?

PW Robot X

PW Robot Y

Choose Robot X or Y?

Question Ref. No: 3035 An industrial engineer is considering two robots for improving efficiency in a fibre-optic manufacturing company. Robot X will have a first cost of RM86000, an annual maintenance and operation (M&O) cost of RM32000, and a RM35000 salvage value after its useful life of 4 years. A more sophisticated Robot Y will have a first cost of RM157000, an annual M&O cost of RM32900, and a RM55000 salvage value after its 4 year life. Which should be selected on the basis of a present worth comparison at an interest rate of 7% per year? PW Robot X PW Robot Y Choose Robot X or Y? Format: -326783.7 Format: -748548.93 Format :A