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Chi 1 1 Saxon Products, Inc. is investigating the purchase of a robot for use on the company's assembly line, Selected data relating to the robot are provided below: Cost of the robot stallation and software Annual savinis ventory carrying Amal increase in power and maintenance costs Salvage value in 5 years 51,150,000 1 435.000 1220.000 1 0.000 71.000 Engineering studies suggest that use of the robot will result in a savings of 29,000 direct labor hours each year. The labor rate is $15 per hout. Also, the smoother workflow made possible by the use of automation will allow the company to reduce the amount of inventory on hand by $418,000. This inventory reduction will take place at the end of the first year of operation the released funds wie be available for use elsewhere in the company, Saxon Products has a 17% required rate of return Click here to view Exhibit 148.1 and Exhibit:198-2. to determine the appropriate discount factors) using tables Required: 1. Determine the annual net cost savings if the robot is purchased. (Do not include the $418,000 inventory reduction or the salvage value in this computation 2 Compute the net present value of the proposed Investment in the robot 2-b Based on these date, would you recommend that the robot be purchased? 3-2. Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were 593.000 more than estimated and direct labor could only be reduced by 22,000 hours per year, rather than the original estimate of 29.000 hours Assuming that other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? 3-5. Does it appear that the company made a wise investment? 4 Which of the following are intangible benefits associated with the new automated equipment 4. Based on your ans in Requirement 3 above compute for the president the minimum dollar amount of annual cash inflow that would be needed from the benefits in partial for the automated equipment to yield a 17% rate of return Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Req 38 Reg 4 Reg 48 Determine the annual net cost savings of the robot is purchased. (Do not include the $418,000 inventory reduction or the salvage value in this computation.) Annual net cost savings Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 Reg 3A Req38 Reg 4 Red 4B Compute the net present value of the proposed investment in the robot. (Round your final answer to the nearest whole offer amount.) Net present value Complete this question by entering your answers in the tabs below. Req1 Reg 2A Reg 28 Reg 3A Req3B Req 4A Reg 4B Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were $93,000 more than estimated and direct labor could only be reduced by 22,000 hours per year, rather than the original estimate of 29,000 hours. Assuming that all other cost data is accurate, what would a postaudit suggest is the actual net present value of this investment? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) Show less Net present value Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3A Req 38 Req 4A Reg 4B Which of the following are intangible benefits associated with the new automated equipment? (Select which of the following statements (is) are true by selecting an "X"). Reduction in inventories Greater throughout Increase in inventories Greater variety of products Higher quality Reduced cost per unit of raw material Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req Reg 38 Reg 4 Req 48 Based on your analysis in Requirement 3 above, compute for the president the minimum dollar amount of annual cash inflow that would be needed from the benefits in part 4(a) for the automated equipment to yield a 17% rate of return (Round your final answer to the nearest whole dollar amount Amount of annual cash inflow

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