Hyundai USA has numerous robotic welders and checkers with vision. One underbody robotic welder costing $1,200,000 (7 year property class) was installed and is increasing productivity by 2.5 percent in one area. The result is a savings of $500,000 per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only $120,000. Hyundai borrowed $550,000 at 11 percent for 5 years. They plan to keep the welder for 8 years. Hyundais marginal tax rate is 40 percent, and their MARR is 9 percent after taxes. Develop tables to illustrate the payment amounts and schedule for the loan, assuming payback is as follows: a. The loan is paid back using method 1 (interest only at the end of each year of the loan, plus principal at the end of the last year)

Loan Amount Interest Rate Time Years EOY Accumulated Interest Total Amount owed Interest Payment Principal Payment Total Payment Total Owed After Payment