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Business, 18.10.2019 22:00 AceTest

Eddie is a production engineer for a major supplier of component parts for cars. he has determined that a robot can be installed on the production line to replace one employee. the employee earns $20 per hour and benefits worth $8 per hour for a total annual cost of $58,240 this year. eddie estimates this cost will increase 6% each year. the robot will cost $16,500 to operate for the first year with costs increasing by $1500 each year. the firm uses an interest rate of 15% and a 10-year planning horizon. the robot costs $75,000 installed and will have a salvage value of $5000 after 10 years. should eddie recommend that purchase of the robot? show work and include the cash-flow diagram for each.

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