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(13) An automobile manufacturing company is considering purchasing an industrial robot to do spot welding. The installed cost for the robot is $210,000 and the

(13) An automobile manufacturing company is considering purchasing an industrial robot to do spot welding. The installed cost for the robot is $210,000 and the annual labor savings are estimated to be $150,000. What are the revenues for this project? d($150,000)

A. -$210,000 B. $150,000 C. ($210,000)

(14). Continuing with problem 13, the robot will be depreciated using 5 years MACRS. The robot will be used for 7 years where the company expects to sell the robot for $60,000. What is the depreciation at the end of the 7 years?

A. $12,096 B. $0 C. $24,192 D. $40,320

(15). Continuing with problem 13, The companys marginal tax rate is 35% over the project period. What is their taxable income for year I of this project?

A. $108,000 B. $150,000 C. $70,200 D. $97,500

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