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 $220,000, and the annual labor savings are projected to be $176,353. 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 $51,000. The company's marginal tax rate is 26% over the project period. Assume MARR= 10%.
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
$enter your response here
1
An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is current
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