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Mr. Asimov must replace the 12 robots on his assembly line. The
Robo100 model costs $21565 per robot and they will last for three
years. The EconoRobo model costs $11975 per robot and will last for
two years. The Robo100 models will have an end of life salvage
value of $8883 each. The EconoRobo models will not have any value
at the end of their lives. The Robo100 models are also more energy
efficient and it is estimated Mr. Asimov will be able to save a
total of $5493 per year in energy costs. Mr. Asimov uses a MARR of
10% to evaluate potential investments.