An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently done by skilled labour. The initial cost of the robot is $ 246,431, and the annual labour savings are projected to be $ 110,471. The robot is a Class 43 property with a CCA rate of 30%. The robot will be used for seven years, at the end of which the firm expects to sell it for $ 14,914. The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.

An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently done by skilled labour. The initial cost of the robot is $ 246,431, and the annual labour savings are projected to be $ 110,471. The robot is a Class 43 property with a CCA rate of 30%. The robot will be used for seven years, at the end of which the firm expects to sell it for $ 14,914. The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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