An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently

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An Automobile Manufacturing Company Is Considering Purchasing An Industrial Robot To Do Spot Welding Which Is Currently 1 (35.09 KiB) Viewed 10 times

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 $300,000, and the annual labor savings are projected to be $166,691. 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 $66,000. The company's marginal tax rate is 25% over the project period. Assume MARR= 15%. Click the icon to view the MACRS depreciation schedules 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 1