31. Autobot Systems Inc. Is evaluating three robot proposals for use in its assembly line. Information regarding these proposals are as follows:
Robot 1
Robot 2
Robot 3
Initial Cost
P2 000 000.00
P3 000 000.00
P1 500 000.00
Annual Operating Cost
150 000.00
200 000.00
100 000.00
Annual Savings
1 200 000.00
1 300 000.00
Useful Life, years
3
6
2
Assuming a salvage value of 10% and a 17% MARR, determine which robot should be preferred using AW analysis.
(Ans. AT1=P201 367.37; AT2=P296 740.03; AT3=P222 880.18; select robot 2)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here