An automobile-manufacturing company is considering purchasing an industrial robot to do spot welding, which is currently done by skilled labor. The initial cost of the robot is $185,000, and the annual labor savings are projected to be $120,000. If purchased, the robot will be depreciated according to declining balance with depreciation rate of 35%. The robot will be used for seven years, at the end of which time the rm expects to sell it for $40,000. The company's marginal tax rate is 35% over the project period. Determine the net after-tax cash ows for each period over the project life.

In Excel Formate as follow

Income Statement
End of Year	0	1	2	3	4	5
Revenue
Expenses
Labor
Material
Overhead
Depreciation
Taxable income
Income Tax
Net Income
Cash Flow Statement
Operating Activities
Net Income
Depreciation
Investment Activities
Milling Machine
Salvage Value
Gain Tax
Working Captial
Financing Activities
Borrowed funds
Repayment of principle
Net Cash Flow
	PW =
	IRR =

Purchase price

End of Year

Depreciation

Book Vaue

Annual revenue
Annual sales
Revenue per unit
Unit variable cost
labor
material
overhead
Monthly volume				Changes in working capital
finished good inventory
raw material inventory
Accounts payable
Accounts receivable
			TOTAL