1. You are a budget analyst at M&M Motors evaluating replacing the existing production equipment with new robotics technology for its truck line. If done, this would produce profits over the next five years valued TODAY at $500,000. If M&M were to continue using its existing equipment, profits over the next five years would be $350,000 valued in TODAYs dollars. The new robotics technology would require an initial investment of $285,000 and the existing equipment can be salvaged for $85,000. Use marginal cost-benefit analysis to determine the following: (8 pts)

1. The marginal (incremental) benefit of the proposed new robotics

2. Marginal (incremental) cost of new robotics:

3. What is the Net benefit of proposed new robotics?

4. Should you recommend the new robotics system? Why or why not?