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You need to purchase an additional robot for your manufacturing facility. For your application, you have found two models that meet your requirements, a Denso

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You need to purchase an additional robot for your manufacturing facility. For your application, you have found two models that meet your requirements, a Denso and a Kuka. The robots both have three-year guarantees. There is no salvage value for either robot. Both will replace 3 workers and each worker costs $3600 per month in salary and benefits. You may borrow money at 4.25% APR compounded monthly for any purchase. Calculate the payback period for each option. Denso robot: Initial cost = $ 205,000 Monthly consumable savings = $ 0 Kuka robot: Initial cost = $ 224,000 Monthly consumable savings = $ 2100 Denso Payback Period (include units): ___ Kuka Payback Period (include units): ____ Based on payback period alone, which robot should you choose? Denso Kuka

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