Bridgeport Company manufactures automobile components for the worldwide market. The company has three large production facilities in Virginia, New Jersey, and California, which have been operating for many years. Brett Harker, vice president of production, believes it is time to upgrade operations by implementing computer-integrated manufacturing (CIM) at one of the plants. Brett has asked corporate controller Connie Carson to gather information about the costs and benefits of implementing CIM. Carson has gathered the following data: Initial equipment cost Working capital required at start-up Salvage value of existing equipment Annual operating cost savings $6,372,000 $637,200 $79,650 892,080 Salvage value of new equipment at end of its useful life 212,400 Working capital released at end of its useful life Useful life of equipment 637,200 10 years Bridgeport Company uses a 12% discount rate Click here to view the factor table