Calculate the annual worth of the investment

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Reference no: EM131941313

Question: 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 $218,780, and the annual labour savings are projected to be $90,827. 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 $28,144. The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.

Reference no: EM131941313

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