What is the rate of return on project

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Reference no: EM131259926

The company you are working for is trying to automate a process with the Fanuc (Yellow) robot. This robot will cost $850,000 including installation. You expect it will have an 8 year life and will save $125,000 per year in production labor costs. Normally, with inflation, production labor would expect to increase by 2% per year. Also, the equipment will take $15,000 per year in Maintenance costs that will hold flat. What is the Rate of Return on this project?

Reference no: EM131259926

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