How much could the military afford to spend on the robot

Reference no: EM131004255

1. Improvised explosive devices (IEDs) are responsible for many deaths in times of war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If the robots cost $140,000 each and the U.S. Army signs a contract to purchase 4000 of them now, what is the equivalent annual cost of the contract if it is amortized over a 3-year period at 8% per year interest?

2. The U.S. Navy's robotics lab at Point Loma Naval Base in San Diego is developing robots that will follow a soldier's command or operate autonomously. If one robot would prevent injury to soldiers or loss of equipment valued at $1.5 million, how much could the military afford to spend on the robot and still recover its investment in 4 years at 8% per year?

Reference no: EM131004255

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