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A manufacturing company wants to decrease its labor costs by substituting skilled welders with robot welding machines. If the company marginal tax rate is 36%
A manufacturing company wants to decrease its labor costs by substituting skilled welders with robot welding machines. If the company marginal tax rate is 36% is the investment a good idea? Assumed 2,000 working hours in a year.
MACHINE COST: $268,279
MACHINE INSTALATION COST: $18,727
DEPRECIATION: 7 year MARCS, half year conversion
SALVAGE VALUE @ YEAR 5: $50,973
COMPANY MARR: 19%
WELDER SALARY: $56/hr, benefits 34%
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