What is the present worth of the econorobo system

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Reference no: EM131969330

Mr. Asimov must replace the 14 robots on his assembly line. The Robo100 model costs $26968 per robot and they will last for three years. The EconoRobo model costs $12361 per robot and will last for two years. The Robo100 models will have an end of life salvage value of $10164 each. The EconoRobo models will not have any value at the end of their lives. The Robo100 models are also more energy efficient and it is estimated Mr. Asimov will be able to save a total of $12261 per year in energy costs. Mr. Asimov uses a MARR of 10% to evaluate potential investments. Using present worth analysis, what is the present worth of the EconoRobo system? Notes: Assume all robots on the assembly line are replaced. Enter your answer as: 1234 Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").

Reference no: EM131969330

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