An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is...
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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 $ 198,454 , and the annual labour savings are projected to be $ 111,007 . 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 $ 36,996 . The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.
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