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 $ 225,000 , and the annual labour savings are projected to be $ 95,000 . 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 $ 25,000 . The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.

Answer rating: 100% (QA)

To calculate the annual worth of the investment in the industrial robot we need to consider the init... View the full answer