Calculate the payback period in given problem

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Reference no: EM131930485

Question: ABB sells a palletizing robot system, which includes the robots, conveyors, guarding, shrink-wrapper, end-of-arm tooling, programming, and training for two people. The package price is $936,000 and will eliminate six manual labor positions. Each manual labor position costs $4350 per month in wages and benefits. The robots have a one year guarantee (assume there is no salvage value). At current interest rates of 3.75% APR, calculate the payback period.

Reference no: EM131930485

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