A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of...


A process control manager is considering two robots to improve materials-handling capacity<br>in the production of rigid shaft couplings that make dissimilar drive components. Robot X has<br>a first cost of $92,000, an annual M&O cost of $31,000, and $40,000 salvage value, and it<br>will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual<br>M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $124,000<br>per year. The company's MARR is 37% per year, and it uses a 3-year study period for<br>economic evaluations. Calculate the incremental ROR, and identify the robot the manager<br>should select.<br>The incremental ROR is<br>%.<br>The manager should select robot: (Click to select)<br>(Click to select)<br>Y<br>

Extracted text: A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $92,000, an annual M&O cost of $31,000, and $40,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $124,000 per year. The company's MARR is 37% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is %. The manager should select robot: (Click to select) (Click to select) Y

Jun 08, 2022
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