$1.$ Riker Chrome Plating is considering the purchase of a new chemical bath to improve its production efficiency. Relevant information about the purchase follows:

Cost $($including installation$)$ $$550,000$

Useful life $8$ years

Annual pre$-$tax cost savings $$160,000$

Salvage value $$20,000$

Depreciation method Straight$-$line

Unrecoverable initial net working capital $$7,000$

Unrecoverable net working capital per succeeding year $$2,400$

Variable cost $15\%$ of annual pre$-$tax cost savings

Fixed cost $$25,000$

Riker has a tax rate of $22$ percent and its discount rate is $9$ percent.

a$.$ Prepare a schedule showing the after$-$tax cash flows that are associated with the purchase over its useful life. Assume, with the exception of the net working capital requirement in the terminal year, all cash flows occur at the end of each year.

b$.$ Compute the return that will be earned if the purchase is made.

$2.$ In working on a bid project, you have determined that $$318,000$ of fixed assets will be required and that they will be depreciated straight$-$line to zero over the $6-$year life of the project. You have also determined that the discount rate should be $18$ percent and the tax rate will be $35$ percent. In addition, the annual cash costs will be $$198,200.$ After considering all of the project$$s cash flows you have determined that the required operating cash flow is $$92,400.$ Compute the amount of annual sales revenue required.