Question: 16. (13 points) AAE is planning to replace a manual machining system with a robotic machining system. The system is priced at $170,000, which includes

16. (13 points) AAE is planning to replace a

16. (13 points) AAE is planning to replace a manual machining system with a robotic machining system. The system is priced at $170,000, which includes all of the necessary accessories. The annual maintenance cost of the robotic system is $10,000. AAE will be eligible for a $20,000 tax credit from the federal government. The robot will replace 2 hourly operators that each makes $20.00 hourly. Assume each employee works 2000 hours in a year. Using the equation given below calculate the payback period (n) of the robotic system. Please state all of your assumptions and clearly show all your work. n=(net investment cost of the robot)/(net annual cash flow)

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