2. (20 points) Boeing Co. purchases a new robot for the assembly line in $480,000 by borrowing the 40% of purchase price and the rest with own company's money. The loan is to be repaid with one lump sum at the end of year 4 (no interest or principal payment until the end of year 4) at a compound rate of 15%. The robot is a MACRS 7-year property class and it is anticipated that will be used for 8 years and then sold at an estimated market value that decreases 10% of the initial value for each year it is being in place. Annual operating and maintenance expenses are estimated to be $Y increasing by a gradient series of $2,200 thereafter. Savings of $150,000 for the first year are estimated over the present robotic system increasing by 5% per year thereafter. The firm uses a MARR of 15% for its economic analyses. Perform ATCF break even analysis to determine the maximum operating costs in the first year (YS) such that the project achieves an after tax return of 8%. The company tax rate is 21%. 2. (20 points) Boeing Co. purchases a new robot for the assembly line in $480,000 by borrowing the 40% of purchase price and the rest with own company's money. The loan is to be repaid with one lump sum at the end of year 4 (no interest or principal payment until the end of year 4) at a compound rate of 15%. The robot is a MACRS 7-year property class and it is anticipated that will be used for 8 years and then sold at an estimated market value that decreases 10% of the initial value for each year it is being in place. Annual operating and maintenance expenses are estimated to be $Y increasing by a gradient series of $2,200 thereafter. Savings of $150,000 for the first year are estimated over the present robotic system increasing by 5% per year thereafter. The firm uses a MARR of 15% for its economic analyses. Perform ATCF break even analysis to determine the maximum operating costs in the first year (YS) such that the project achieves an after tax return of 8%. The company tax rate is 21%