Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please find AW for Defender and Challenger. Problem 9-10 (algorithmic) Question Help An existing robot is used in a commercial material laboratory to handle ceramic

image text in transcribedimage text in transcribed

Please find AW for Defender and Challenger.

Problem 9-10 (algorithmic) Question Help An existing robot is used in a commercial material laboratory to handle ceramic samples in the high-temperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $3,000. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm's before-tax MARR is 18% per year. Based on this information, should the existing robot be replaced? Assume that a robot will be needed for an indefinite period. Click the icon to view the data for the Defender and the Challenger. 0 More Info - Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. Click the icon to view the interest and annuity table for discrete compounding when MARR = 18% per year. The AW value for Defender is $ 14874. (Round to the nearest dollar.) Current MV Upgrade cost (year 0) Annual expenses Defender $38,900 $3,000 $1,500 in year one, and increasing at the rate of 9% per year thereafter Useful life (years) MV at end of useful life Purchase price Installation cost Annual expenses Useful life (years) MV at end of useful life - $1,800 Challenger $51,000 $5,600 $900 in year one, and increasing by $150 per year thereafter $6,500 Enter your answer in the answer box and then click Check Answer. parts 2 remaining Print Print Done Done X Try again. The estimated annual expenses for the defender are a geometric cash flow sequence. Use the following formulae in your calculations: A [1-(P/F, 1%, M (F/P,7%, N] P= OK Problem 9-10 (algorithmic) Question Help An existing robot is used in a commercial material laboratory to handle ceramic samples in the high-temperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $3,000. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm's before-tax MARR is 18% per year. Based on this information, should the existing robot be replaced? Assume that a robot will be needed for an indefinite period. Click the icon to view the data for the Defender and the Challenger. 0 More Info - Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. Click the icon to view the interest and annuity table for discrete compounding when MARR = 18% per year. The AW value for Defender is $ 14874. (Round to the nearest dollar.) Current MV Upgrade cost (year 0) Annual expenses Defender $38,900 $3,000 $1,500 in year one, and increasing at the rate of 9% per year thereafter Useful life (years) MV at end of useful life Purchase price Installation cost Annual expenses Useful life (years) MV at end of useful life - $1,800 Challenger $51,000 $5,600 $900 in year one, and increasing by $150 per year thereafter $6,500 Enter your answer in the answer box and then click Check Answer. parts 2 remaining Print Print Done Done X Try again. The estimated annual expenses for the defender are a geometric cash flow sequence. Use the following formulae in your calculations: A [1-(P/F, 1%, M (F/P,7%, N] P= OK

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Developments In Entrepreneurial Finance And Technology

Authors: David B. Audretsch, Maksim Belitski, Nada Rejeb, Rosa Caiazza

1st Edition

1800884338,1800884346

More Books

Students also viewed these Finance questions