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solve only g,h,i,j,k step by step please a. 1. The Mighty Mouse Computer company is considering whether or not to install a packaging robot. The
solve only g,h,i,j,k step by step please
a. 1. The Mighty Mouse Computer company is considering whether or not to install a packaging robot. The robot initial cost $460,000, shipping cost $30,000 and installation $10,000. The robot can be depreciated using MACRS as a 5-year asset. (MACRS depreciation rates for a five-year asset: 20%, 32%, 19.2%, 11.52%, 11.52%, and 5.76%.) The robot is expected to last for five years, at which time management expects to sell it for parts for $100,000. The robot is expected to replace five employees in the shipping department, saving the company $150,000 each year. Mighty's tax rate is 30%. What are the cash flows related to the acquisition of the packaging robot? b. What are the cash flosis related to the disposition of the Font Size packaging robot? What are the net cash flows for each year of the robot's 5 year life? d. What is the net present value of the robot investment if the cost of capital is 10%? e. What is the net present value of the robot investment if the cost of capital is 4.5%? f. What is the profitability index of this investment if the cost of capital is 5%? g. What is the payback period of the robot investment? h. What is the discounted payback period of the robot invest- ment if the cost of capital is 5%? i. What is the internal rate of return of the robot investment? j. What is the modified internal rate of return of the robot investment if the cash flows are reinvested at 5%? k. If the cost of capital is 5%, should Mighty Mouse invest in this robotStep by Step Solution
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