Question: please answer all parts Problem 7-26 (algorithmic) Question Help An assembly operation at a software company currently requires $108,000 per year in labor costs. A

Problem 7-26 (algorithmic) Question Help An assembly operation at a software company currently requires $108,000 per year in labor costs. A robot can be purchased and installed to automate this operation, and the robot will cost $191,000 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 $73,000 per year. The company has an effective income tax rate of 26%. Invested capital must earn at least 8% 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)? Click the icon to view the GDS Recovery Rates (r) for the 7-year property class. i More Info GDS Recovery Rates (K) Year 7-year Property Class 1 0.1429 2 0.2449 3 0.1749 4 0.1249 5 0.0893 6 0.0892 7 0.0893 8 0.0446 Print Done
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