Transcribed Image Text
In: AccountingAn industrial engineer is considering two robots for purchase bya fiber optic manufacturing company. Robot...An industrial engineer is considering two robots for purchase bya fiber optic manufacturing company. Robot X will have a first costof $125,000, an annual maintenance and operation (M&O) cost of$40,000, and a $60,000 salvage value. Robot Y will have a firstcost of $145,000, an annual M&O cost of $33,000, and a $65,000salvage value. Which should be selected on the basis of an annualworth comparison of 9% per year? Use a 3-year study period.Interest Rate9%Robot X Cash FlowsRobot Y Cash FlowsYear EndCash FlowPresent ValueYear EndCash FlowPresent Value00112233Total PVTotal PVAnnual Worth for Robot XAnnual Worth for Robot Y-$71,078.56-$70,454.38Which model should the company buy?