Calculate the annual worth of this investment

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Reference no: EM131056373

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 $ 224,667 , and the annual labour savings are projected to be $ 107,910 . 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 $ 16,855 . The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.

Reference no: EM131056373

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