Homework Answers
NPW of Manual method = -425000 - 90000 * (P/A, 8%,5) - 7000 * (P/G, 8%,5) + 80000 * (P/F, 8%,5)
= -425000 - 90000 * 3.992710 - 7000 * 7.372426 + 80000 * 0.680583
= -781504.23
NPW of Robotic method = -850000 - 10000 * (P/A, 8%,5) - 1000 * (P/G, 8%,5) + 300000 * (P/F, 8%,5)
= -850000 - 10000 * 3.992710 - 1000 * 7.372426 + 300000 * 0.680583
= -693124.57
As the net present cost of Robotic method is less, it should be selected
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