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1. By installing some elaborate inspection equipment on its assembly line, the Robo

1. By installing some elaborate inspection equipment on its assembly line, the Robo

1. By installing some elaborate inspection equipment on its assembly line, the Robot Corp. can avoid hiring an extra worker who would have earned $26,000 a year in
wages and an additional $7500 a year in employee benefits. The inspection equipment has a 6-year useful life and no salvage value. Use a nominal 18% interest rate
in your calculations. How much can Robot afford to pay for the equipment if the wages and worker benefits would have been paid a) At the end of each year b)
monthly 2. Two different companies are offering a punch press for sale. Company A charges $250,000 to deliver and install the device. Company A has estimated that
the machine will have maintenance and operating costs of $4000 a year and will provide an annual benefit of $89,000. Company B charges $205,000 to deliver and
install the device. Company B has estimated maintenance and operating costs of the press at $4300 a year, with an annual benefit of $86,000. Both machines will
last 5 years and can be sold for $15,000 for the scrap metal. Use an interest rate of 12%. Which machine should your company buy?? Please help me out here thanks!

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