Question: please answer all parts 2. An assembly operation at a software company currently requires $92,000 per year in labor costs. A robot can be purchased

please answer all parts 2. An assembly operation at a software companyplease answer all parts

2. An assembly operation at a software company currently requires $92,000 per year in labor costs. A robot can be purchased and installed to automate this operation, and the robot will cost $194,000 with no MV at the end of its 10-year life. The robot, if acquired, will be depreciated using SL depreciation to a terminal BV of zero after 10 years. Maintenance and operation expenses of the robot are estimated to be $71,000 per year. The company has an effective income tax Invested capital must earn at least 7% after income taxes are taken into account. a. Use the IRR method to determine if the robot is a justifiable investment. b. If MACRS (seven-year recovery period) had been used in Part (a), would the after-tax IRR be lower or higher than your answer to Part (a)? 2 Click the icon to view the GDS Recovery Rates () for the 7-year property class. a. The after-tax IRR under the SL method is %. (Round to one decimal place.) The robot (1) a justifiable investment. b. The after-tax IRR under the MACRS method is %. (Round to one decimal place.) For this situation the after-tax IRR under the MACRS method is (2) - than under the SL method. 2: More Info GDS Recovery Rates (1) Year 7-year Property Class 0.1429 0.2449 0.1749 0.1249 0.0893 0.0892 0.0893 0.0446 COVOAWN- (1) is not O is (2) O lower O higher

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