Determine if the robot is a justifiable investment

Reference no: EM13697424

An assembly operation at a software company now requires $100,000 per year in labor costs. A robot can be purchased and installed to automate his operation. The robot will cost $200,000 and will have no market value an end of the 10 year study period. Maintenance and operation expenses of the robot are estimated to be $64,000 per year. Invested capital must earn at least 12% per year. Use the IRR methods to determine if the robot is a justifiable investment

Reference no: EM13697424

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