An industrial engineer is considering two robots for purchase by a fiber optic manufacturing company. Robot X will have a first cost of $125,000, an annual maintenance and operation (M&O) cost of $40,000, and a $60,000 salvage value. Robot Y will have a first cost of $145,000, an annual M&O cost of $33,000, and a $65,000 salvage value. Which should be selected on the basis of an annual worth comparison of 9% per year? Use a 3-year study period.

Interest Rate	9%
Robot X Cash Flows				Robot Y Cash Flows
Year End	Cash Flow	Present Value		Year End	Cash Flow	Present Value
0				0
1				1
2				2
3				3
	Total PV				Total PV
Annual Worth for Robot X				Annual Worth for Robot Y
		-$71,078.56				-$70,454.38
Which model should the company buy?