Question

An existing robot can be kept if 2,100 is spent now to upgrade it for future service requirements. Alternatively, the company can purchase a new robot to replace the old robot. the following estimates have been developed for both the defender and the challenger. The company's before tax MARR is 25% per year. Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time.

υιυιυυυυυιυυπαρισι τπυπιεννυ Κ. :-01-FA19 Kayla Capps & 1 mework: Chapter 9 Homework of 1 pt m 9-2 (algorithmic) 2 of 7 (4 complete) HW Score: 33 Defender Current MV Required upgrade Annual expenses $37,000 $2,100 $1,400 Challenger Purchase price Installation cost Annual expenses H .- J . $53,000 $5,700 $900 ----- - alue of the defender is $ 23,384 (Round to the nearest dollar.) answer in the answer box and then click Check Answer ing Clear All Final ious Loa e WWIGG

The AW value of the defender is?

Answer 1

AW of the defender= -(37000+2100)*(A/P, 25%,6) - 1400 - 1500 * (A/F, 25%,6)

= -39100*0.3388 - 1400 - 1500 * 0.0888

= -14780.28 ~ -14780 (Nearest Dollar)