You require an additional robot for your manufacturing


You require an additional robot for your manufacturing facility. For your application, you have found two robots that meet your specifications; an OTC and a Denso. You may borrow money for this purchase at 3.8% APR compounded monthly for six years. Comparing Net Present Values, which one should you buy? Include a Cash flow diagram for each purchase option.

A) OTC robot           initial cost= $74,500

                                Monthly consumbale costs= $379

                                Estimated 7-year salvage value= $7,500

B) Denso robot: initial cost= $86,000

                           Monthly consumable costs= $199

                          Estimated 7 year salvage value= $5,000

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Financial Management: You require an additional robot for your manufacturing
Reference No:- TGS02712610

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