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 $ 246,431, and the annual labour savings are projected to be $ 110,471. 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 $ 14,914. The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment.

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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 $ 246,431, and the annual labour savings are projected to be $ 110,471. 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 $ 14,914. The company's marginal
tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this
investment.
(Note: Don't use the $ sign in your answer and round it to 2 decimal places)
Transcribed Image Text: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 $ 246,431, and the annual labour savings are projected to be $ 110,471. 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 $ 14,914. The company's marginal tax rate is 35% and the after-tax MARR is 10%. Calculate the annual worth of this investment. (Note: Don't use the $ sign in your answer and round it to 2 decimal places)
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