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Please write down the calculation method An auto-part manufacturing company is considering the purchase of an industrial robot to do spot welding, which is currently

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Please write down the calculation method

An auto-part manufacturing company is considering the purchase of an industrial robot to do spot welding, which is currently done by skilled labor. The initial cost of the robot is $250,000, and the annual labor savings are projected to be $125,000. If purchased the robot will be depreciated under MACRS as a seven-year recovery property. This robot will be used for five years after which the firm expects to sell it for $50,000. The company's marginal tax rate is 25% over the project period. Suppose that the project requires a $30,000 investment in working capital at the beginning of the project and the entire amount will be recovered at the end of project life. Determine the net after-tax cash flows for each period over the project life. Assume MARR = 15%. Click the icon to view the MACRS depreciation schedules. Fill in the table below. (Round to the nearest dollar.) Period Net After-Tax Cash Flow 0 1 $ $ $ 2

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