Page 1 of 1

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

Posted: Sun Jul 03, 2022 6:56 am
by answerhappygod
An Automobile Manufacturing Company Is Considering Purchasing An Industrial Robot To Do Spot Welding Which Is Currently 1
An Automobile Manufacturing Company Is Considering Purchasing An Industrial Robot To Do Spot Welding Which Is Currently 1 (35.09 KiB) Viewed 11 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