5.26 An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing com- pany. Robot X will have a first cost of $80,000, an annual maintenance and operation (M&O) cost of S30,000, and a $40,000 salvage value. Robot Y will have a first cost of $97,000, an annual M&O cost of $27,000, and a $50,000 salvage value. Which should be selected on the basis of a future worth comparison at an interest rate of 15% per year? Use a 3-year study period.

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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5.26 An industrial engineer is considering two robots
for purchase by a fiber-optic manufacturing com-
pany. Robot X will have a first cost of $80,000, an
annual maintenance and operation (M&O) cost of
S30,000, and a $40,000 salvage value. Robot Y
will have a first cost of $97,000, an annual M&O
cost of $27,000, and a $50,000 salvage value.
Which should be selected on the basis of a future
worth comparison at an interest rate of 15% per
year? Use a 3-year study period.
Transcribed Image Text:5.26 An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing com- pany. Robot X will have a first cost of $80,000, an annual maintenance and operation (M&O) cost of S30,000, and a $40,000 salvage value. Robot Y will have a first cost of $97,000, an annual M&O cost of $27,000, and a $50,000 salvage value. Which should be selected on the basis of a future worth comparison at an interest rate of 15% per year? Use a 3-year study period.
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