A manufacturing company wants to decrease its labor costs, Business Economics

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A manufacturing company wants to decrease its labor costs

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?

MACHINE COST: $268,279

MACHINE INSTALATION COST: $18,727

DEPRECIATION: 7 year MARCS, half year conversion

SALVAGE VALUE @ YEAR5: $50,973

COMPANY MARR: 19%

WELDER SALARY: $56/hr, benefits 34%

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Business Economics: A manufacturing company wants to decrease its labor costs

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Business Economics: A manufacturing company wants to decrease its labor costs

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