Question: Suppose that two robot alternatives are being considered for an industrial application, following are the principal cost data for one cycle of each robot. Evaluate

Suppose that two robot alternatives are being considered for an industrial application, following are the principal cost data for one cycle of each robot. Evaluate both options

a) using NPV method.

b) using modified b/c analysis.

Which option should be chosen? assume the MARR is 8% use the cash flow table below, you do not need to draw the cash flow diagram for this question.

Option: A Investment: 28,000 Life: 4 years Salvage Value: 13,000 Income: 15,000 Annual cost: 6,000

Option: B Investment: 45,000 Life: 6 years Salvage value: 14,000 Income: 21,000 Annual Cost 8,500

Which option should be chosen.

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