Which one should be selected on the basis of rate of return

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Robot X has a first cost of $84,000 an annual maintenance and operation (M&O) cost of $31,000, a $40,000 salvage value, and will improve net revenues by $96,000 per year. Robot Y has a first cost of $146,000 an annual M&O cost of $28,000, a $47,000 salvage value and will increase net revenues by $119,000 per year. Which one should be selected on the basis of a rate of return analysis if the company's MARR is 15% per year? Use a three year study. Robot X Robot Y First Cost $ -84,000 -146,000 M&O -31,000 -28,000 Revenues 96,000 119,000 Salvage 40,000 47,000 Life Years 3 3

Reference no: EM13180494

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