Thinking of purchasing okura palletizing robotic system

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Reference no: EM131917129

You are thinking of purchasing an Okura palletizing robotic system that can turn a 4 person task into a 1 person task. Each person, including benefits and expenses, cost $4,500 per month. The robot, training, tooling, programming, conveyors, and all other peripheral equipment will cost $845,00, which must be borrowed at 3.75% APR and paid back over seven years (monthly payments, compounded monthly). The salvage value of the robot at this time is expected to be $40,000. Comparing monthly costs to monthly savings, is this a wise purchase? Include a cash flow diagram for the purchase and a cash flow diagram for the savings.

Reference no: EM131917129

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