- An Automobile Manufacturing Company Is Considering Purchasing An Industrial Robot To Do Spot Welding Which Is Currently 1 (22.02 KiB) Viewed 12 times
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An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently done by skilled labor. The initial cost of the robot is $260,000, and the annual labor savings are projected to be $179,733. If purchased, the robot will be depreciated under MACRS as a five-year recovery property. The robot will be used for seven years, at the end of which time, the firm expects to sell it for $54,000. The company's marginal tax rate is 26% over the project period. Assume MARR = 16%. Click the icon to view the MACRS depreciation schedules. C Determine the net after-tax cash flows for each period over the project life. Fill in the table below. (Round to the nearest dollar.) Period Net After-Tax Cash Flow 0 $-260000 1
More Info Year n 1 2 3 4 19 7 9 10 11 12 13 ! 14 15 Class Depreciation rate 3 200% 33.33 44.45 14.81* 7.41 5 200% 20.00 32.00 19.20 11.52* 11.52 5.76 7 200% 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10 200% 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15 150% 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 20 150% 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462