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Elaborate inspection equipment on assembly line

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By installing some elaborate inspection equipment on its assembly line, the Robot Corp. can avoid hiring an extra worker who would have earned $36,000 a year in wages and an additional $9500 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 equipment if the wages and worker benefits were to have been paid monthly?

Reference no: EM131376139

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