Capital expenditures budget On January 1,20Y6, the controller of Omicron Inc. is planning capital expenditures for the years 20Y6-20Y9. The following interviews helped the controller collect the necessary information for the capital expenditures budget: Director of Facilities: A construction contract was signed in late 20Y5 for the construction of a new factory building at a contract cost of $10,000,000. The construction is scheduled to begin in 2016 and be completed in 2019. Vice President of Manufacturing: Once the new factory building is finished, we pian to purchase 51.5milion in equipment in late 20r. I expect that an additional $200,000 will be needed early in the following year (20y8) to test arid install the equipment before we can begin production. If. sales continue to grow, I expect well need to itvest anather $1,000,000 in equipment in 209. Chief Operating Officer: We have really been growing lately. I wouldn't be surprised if w6 need to nxpand the size of our new factory building in 209 by at least 35%. Fortunately, we expect infiotion to have minimal impact on construction costs over the next four yearsi Additionally, 1 would expect the cost of the expansion to be proportional to the size of the expansion. Director of Information Syetems: We need to upgrade our information systems to wifeless network. technology. It doesn't make sense to do this untll after the neww factory buiding is completed and producing froduct, During 20va, ance thie factory is up and ninning, we should eauip the wivole faciley with wireless technulogy. L think it would cost us $800,000 today to install the technology However, peices have been dropping by 25%4 per year, 50i should be less expensive ot a later date. Chief financial Orficer: 1 am excited obout our long-term orospects. My onty short-terin concem is managing cur cash flow while we wispent the 20Y9 by at least 35%. Fortunately, we expect inflation to have minimal impact on construction costs over expect the cost of the expansion to be proportional to the size of the expansion. Director of Information Systems: We need to upgrade our information systems to wireless network technol until after the new factory building is completed and producing product. During 20Y8, once the factory is up whole facility with wireless technology. I think it would cost us $800,000 today to install the technology. Hor 25% per year, so it should be less expensive at a later date. Chief Financial Officer: I am excited about our long-term prospects. My only short-term concern is managing $4,000,000 of construction costs in 20Y6 and $6,000,000 in 20Y7 on the portion of the new factory building Use this interview information to prepare a capital expenditures budget for Omicron Inc. for the years 20Y6