Question: An automated solution implementation is being evaluated. This automated solution is composed by a welding robotic cell to improve the production capacity of the company.

An automated solution implementation is being evaluated. This automated solution is composed by a welding robotic cell to improve the production capacity of the company. In the current scenario, there are 11 employees to do the process. In the next table, you can visualize the data from the two scenarios:

Use the financial skills such as ROI to determine the rentability of the automated project.

Current scenario

Automated solution + 6 operators

Production: 3,960 units per month

Produccin: 5,730 units per month

Investment cost: $0 USD

Investment cost: $663,000 USD

Monthly cost per employee salary: $1,085.00 USD

Maintenance cost: $3,500 USD (each 3 years).

Monthly cost per employee (other concepts): $200.00 USD

Cost of firing (5 employees): $9,000 USD

Annual rate of increase per employee salary: 3%

According to the data presented from 2 scenarios (current and automated solution), perform a financial analysis to select the best option. Justify your answer.

Include conclusion

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