Maintenance and operation expenses | My Assignment Tutor

An assembly operation at a company requires $100,000 per year now in labor cost. A robot can be purchased and installed to automate this operation. The robot will cost $200,000 and will have no market value at the end of the 10 years study period. Maintenance and operation expenses of the robot are $ 64,000 per year. MARR for the company is the 12% per year. Use the internal rate of return method to determine if the robot isAn assembly operation at a company requires $100,000 per year now in labor cost. A robot can be purchased and installed to automate this operation. The robot will cost $200,000 and will have no market value at the end of the 10 years study period. Maintenance and operation expenses of the robot are $ 64,000 per year. MARR for the company is the 12% per year. Use the internal rate of return method to determine if the robot is a justifiable investment.a justifiable investment.

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