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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 Installation and software Annual savings in inventory carrying costs Annual Increase in power and maintenance costs Salvage value in 5 years Useful life $ $ $ $ 1,550, 435.000 225,000 48,00 77.000 5 years In addition to the data above, 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 hour. Also, the smoother work flow 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 will be available for use elsewhere in the company Saxon Products has a 17% required rate of return Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factors using tables Required: 1. 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) 2-a. Compute the net present value of the proposed investment in the robot. 2-b. Based on these data, would you recommend that the robot be purchased? 3-a. 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 all 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-a. Which of the following are intangible benefits associated with the new automated equipment? 4-5. 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 Complete this question by entering your answers in the tabs below. Reg1 Req ZA Reg 28 Req3A Rea30 Reg 4 Reg 45 Determine the annual net cost savings if the robot is purchased. (Do not include the $410.000 inventory reduction or the salvage value in this computation.) Annual het cost savings Req2A > 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 Cont of the robot Installation and software Annual savings in inventory carrying costs Annual increase in power and maintenance costs Salvate value in 5 years Useful life $ $ $ 1,850,00 435, Bee 228,000 48,000 77,000 5 years $ In addition to the data above, 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 hour. 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 will be available for use elsewhere in the company, Saxon Products has a 17% required rate of return Click here to view Exhibit 128-1 and Exhibit12B-2, to determine the appropriate discount factor(s) 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-a. Compute the net present value of the proposed Investment in the robot. 2.b. Based on these data, would you recommend that the robot be purchased? 3-a. 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 orginal 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? 3-b. Does it appear that the company made a wise investment? 4-a. Which of the following are intangible benefits associated with the new automated equipment? 4-5. 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. Complete this question by entering your answers in the tabs below. "Reg Reg Da Reg 28 Req3A Req38 Red Reg 45 Compute the net present value of the proposed Investment in the robot. (Round your final answer to the nearest whole dollar amount.) Net present value ( Req1 Req2B > Saxon Products, Incis investigating the purchase of a robot for use on the company's assembly line. Selected data relating to the robot are provided below Installation and software Annual Savings in inventory carrying costs Annual Increase in power and maintenance costs Salve value in years Useful life 228,00 In addition to the data above, 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 hour. 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. The inventory reduction will take place at the end of the tast year of operation, the released funds will be available for use elsewhere in the company Saxon Products has a 17% required rate of return Click here to view Exhibit 128.1 and Exhibit 128-2 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-a. Compute the net present value of the proposed Investment in the robot 2-5 Based on these data, would you recommend that the robot be purchased? 3-a. Assume that the robot is purchased. However, due to unforeseen problems, software and installation costs were $93000 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? 3-6 Does it appear that the company made a wise investment? 4a Which of the following are intangible benefits associated with the new automated equipment? 4-6. Based on your analysis in Requirement 3 above, compute for the president the minimum dollar amount of annual cash flow that would be needed from the benefits in part 4a) for the automated equipment to yield a 1 rate of return Complete this question by entering your answers in the tabs below. -Reg 1 Reg 24 Res 2 Rea Reo 38 Red e n 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.) Greater throughout Reduced cost per unit of raw mate

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