[Solved] – The Canadian Space Agency is considering two types of robotic arms for the Lunar Gateway. You have been asked to recommend one of the following alternatives. Using the chart below, and an effective…
October 21, 2021 2021-10-21 16:10[Solved] – The Canadian Space Agency is considering two types of robotic arms for the Lunar Gateway. You have been asked to recommend one of the following alternatives. Using the chart below, and an effective…

[Solved] – The Canadian Space Agency is considering two types of robotic arms for the Lunar Gateway. You have been asked to recommend one of the following alternatives. Using the chart below, and an effective…
(Economics Solutions) The Canadian Space Agency is considering two types of robotic arms for the Lunar Gateway.
You have been asked to recommend one of the following alternatives. Using the chart below, and an effective interest rate of 10% per year, which robotic arm should be selected on the basis of a present worth analysis?
(All the alternatives presented below were calculated using compound interest factor tables including all decimal places).
Robotic Arms | Type A | Type B |
First Cost, $ | -12,600 | -11,000 |
AOC, $/yr | -1,200 | -900 |
Replace Sensor in year 4, $ | -2,500 | 0 |
Replace Sensor in year 5, $ | 0 | -1,600 |
Salvage Value, $ | +1,000 | 0 |
Life in Years | 10 | 10 |
Choices
- Recommend Type B with PWB = $-14,985
- Recommend Type A with PWA = $-21,296
- Recommend Type B with PWB = $-17,524
- Recommend Type A with PWA = $-7,319
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