You are debating the decision to automate your workforce, and have two choices

Keep using manual labor to produce the parts in an assembly line:

Labor costs this year (paid at the end of the year) will be $48k

Each year, these costs will increase by4% due towage increases

Replace your work force with robotic arms:

The initial cost will be $1.35M, but the manufacturer will allow you to pay it in 3 equal payments of $450k at the end of the next 3 years

Which should you pick if your firm uses an 8% discount rate?

Please show timeline, equations, calculations and work. Thanks.