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John Deere has an opportunity to purchase a new kuka robotic painting system that costs $1,712,739 which includes programming costs, sprayers, and miscellaneous fund for
John Deere has an opportunity to purchase a new kuka robotic painting system that costs $1,712,739 which includes programming costs, sprayers, and miscellaneous fund for contingencies. The money to purchase the robot will have to be borrowed at 3.25% APR over a five-year period (monthly payments, compounded monthly). The labor savings total $29,400 per month. Using monthly value comparisons, should John Deere purchase the kuka? Include a cash flow diagram for the purchase and a cash flow diagram for the savings.
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