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please be careful with numbers and percent A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft
please be careful with numbers and percent
A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $215,000, an annual M&O cost of $43,000, and $129,000 salvage value, and it will improve revenues by $86,000 per year. Robot Y has a first cost of $136,000, an annual M&O cost of $34,000, and $68,000 salvage value, and it will increase revenues by $68,000 per year. The company's MARR is 10% per year, and it uses a 5-year study period for economic evaluations. Calculate the incremental ROR, so you can identify the robot the manager should select. (As of %)Step by Step Solution
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