The duration taken to
equal the initial investment and net accumulated cash flow in the
development of a robot is called as payback period or payback method. If the
net annual cash flows are identical to every year, then it can be stated by a
formula given below.
Payback period = Investment Cost / Net
Annual Cash Flow
The EUAC is the short
form of Equivalent Uniform Annual Cost method. It is used to alter thetotal
cash flows and investments into the equivalent uniform costs over
the expected time of developing a robot. It is done by employing different
interest features that are connected with the calculations of engineering
The Return on
Investment is the expansion of ROI method. It is used to determine the return
ratio of the current project, which is related to the anticipated
expenditures and profits. If the rate of return is low to the expected
cost of a company, then the investment made is accepted.
Three methods to develop a robot with
Before starting the
development of a robot, some of the data must be collected to carry out economic
analysis effectively. They are:
·Type of robot to
be installed. ·Cost
install a robot.
·Time taken to produce a robot.
·Savings and benefits in the development.
In an industry, the investment put on
the development of a robot can be compared and analyzed by three common
methods such as:
Uniform Annual Cost) method ·ROI
(Return on Investment) method