Please I need some help with this question Mr. Asimov must replace the 13 robots

Question

Please I need some help with this question

Mr. Asimov must replace the 13 robots on his assembly line. The Robo 100 model costs $40929 per robot and they will last for three years. The EconoRobo model costs $13071 per robot and will last for two years. The Robo 100 models will have an end of life salvage value of $12465 each. The EconoRobo models will not have any value at the end of their lives. The Robo 100 models are also more energy efficient and it is estimated Mr. Asimov will be able to save a total of $9703 per year in energy costs. Mr. Asimov uses a MARR of 10% to evaluate potential investments. Using present worth analysis, what is the present worth of the EconoRobo system? Notes: Assume all robots on the assembly line are replaced.

Explanation / Answer

As life span is different so the common multiple of life span for both alternative is 6 years

EconoRobo PW = 13071 + 13071/1.1^2 + 13071/1.1^4 = 13071 + 10802.48 + 8927.67 = 32801.15 per robo

So for system Econorobo PW = 426414.93

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