Question: You need to purchase an additional robot for your manufacturing facility. For your application, you have found two models that meet your requirements, a Denso

 You need to purchase an additional robot for your manufacturing facility.

You need to purchase an additional robot for your manufacturing facility. For your application, you have found two models that meet your requirements, a Denso and a Kuka. The robots both have three-year guarantees. There is no salvage value for either robot. Both will replace 3 workers and each worker costs $3600 per month in salary and benefits. You may borrow money at 4.25% APR compounded monthly for any purchase. Calculate the payback period for each option. Denso robot: Initial cost = $ 205,000 Monthly consumable savings = $ 0 Kuka robot: Initial cost = $ 224,000 Monthly consumable savings = $ 2100 Denso Payback Period (include units): ___ Kuka Payback Period (include units): ____ Based on payback period alone, which robot should you choose? Denso Kuka

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