# economic engineering

By installing some elaborate inspection equipment
on its assembly line, the Robot Corp. can avoid hir-
ing 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 nom-
inal 18% interest rate in your calculations. How
much can Robot afford to pay for the equipment if
the wages and worker beneﬁts were to have been
paid
(a) At the end of each year
(b) Monthly
Explain why the answer in (b) is larger.

This is the formula im using
npw=p(p/a)+p(p/a)

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