Hyundai USA has numerous robotic welders and checkers with vision. One underbody robotic welder was installed and is increasing productivity by 2.5 percent in one area. The result is a savings of \($500,000\) per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only \($120,000.\) Depreciation is \($171,480\) this year. Interest on borrowed money is \($60,500,\) and no principal is paid back this year.

a. Determine the taxable income for the year.

b. Determine the income tax for the year assuming a marginal tax rate of 40 percent.

c. Determine the after-tax cash flow for the year.