Determine the marginal added benefit, cost, and net benefit for the new robotics?

mar68_00637

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The marginal of the automotive division believes that replacing the robotics used on the heavy truck gear line will produce total benefits of $560,000 over the next 5 years. the existing robotics would produce $400,000 over that same time. An initial cash investment of $220,000 would be required to install the new equipment , the manager estimates that the existing robotics can be sold for $70,000.
 
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