Require additional robot for manufacturing facility

Assignment Help Financial Management

Reference no: EM131917131

You require an additional robot for your manufacturing facility. For your application, you have found two robots that meet your specifications; an OTC and a Denso. You may borrow money for this purchase at 3.8% APR compounded monthly for six years. Comparing Net Present Values, which one should you buy? Include a Cash flow diagram for each purchase option.

A) OTC robot initial cost= $74,500

Monthly consumbale costs= $379

Estimated 7-year salvage value= $7,500

B) Denso robot: initial cost= $86,000

Monthly consumable costs= $199

Estimated 7 year salvage value= $5,000

Reference no: EM131917131

Questions Cloud

What is the concentration of f : What is the concentration of F- in the solution when the reaction is complete?

What is the best use for these common-size : What is the best use for these common-size? when would you use them?

Comment on the process strategy at wheeled coach case : What alternate strategy would your recommend that Wheeled Coach use to improve their currently assembly line approach?

Tax purposes to zero over the four year life of project : The necessary capital investment is $3.4 million, which will be depreciated for tax purposes to zero over the four year life of the project.

Require additional robot for manufacturing facility : You require an additional robot for your manufacturing facility. Comparing Net Present Values, which one should you buy?

How the information from the data warehouse promotes : Please explain briefly how the information from the data warehouse promotes customer relationship management.

Thinking of purchasing okura palletizing robotic system : You are thinking of purchasing an Okura palletizing robotic system that can turn a 4 person task into a 1 person task.

What are the different types of revenue streams : What are the different types of revenue streams? How do these revenue streams differ for a for-profit compared to a non-profit organization?

Determine the molecular formulas for compounds : Determine the molecular formulas for compounds having the following empirical formula and molar mass:

User Account

All Pages