How to solve

Required information

$[$The following information applies to the questions displayed below.$]$

Scientific Frontiers Corporation manufactures scientific equipment for use in elementary schools. In December of $20$x$0$ the company's management is considering the acquisition of robotic equipment, which would radically change its manufacturing process. The controller has collected the following data pertinent to the decision.

The robotic equipment would cost $$1,000,000,$ to be paid in December of $200.$ The equipment's useful life is projected to be eight years. The equlpment is in the MACRS $5-$year property class. The company will use the MACRS accelerated depreciation schedule.

The robotic equipment requires software, which will be developed over a two$-$year period in $201$ and $20\backslash$times $2.$ Each software expenditure, which will amount to $$25\mathrm{.}000$ per year, will be expensed during the year incurred.

A computer systems operator will be hired immediately to oversee the operation of the new robotic equipment. The computer expert's annual salary will be $$60,000.$ Fringe benefits will cost $$20,000$ annually.

Maintenance technicians will be needed. The total cost of their wages and fringe benefits will be $$150,000$ per year.

The changeover of the manufacturing line will cost $$90,000,$ to be expensed in $201.$

Several employees will need retraining to operate the new robotic equipment. The training costs are projected as follows:

$\backslash$table$[[2001,$$$35,000$

Required:

Preperie a year$-$by$-$year columnar schedule including all of the aftertax cash flows assoclated whth the robotic$-$equipment decision. Assume that each cash flow will occur at year$-$end.

Nore: Negative omounte should be indiceted by a minus sign.

$\backslash$table$[[$Type of Cosh Flow,$20$ in$,201,202,203,205,205,206,$Exad,$2$ns$],[1.$ Acquisition cost and depreciation tax shield,$(1m),,,,,,,,],[2.$ Sotware development $25K(1-30\%),,,,,,,,,],[3.$ Computer experf's salary and tringe benefts,$7,,,,,8,,,],[4.$ Maintenance technicians' wages and fringe benefits,,$1,,,,,,,],[5.$ Changeover of line,,$970,,,,,,,],[6.$ Employee training,,$12,$Z$,1,,,,,],[7.$ Investment in working capital $($spare parts$),,,,,,,,,],[8.$ Proceeds from the salvage value of equipment,,,,,,,,,$],[9.$ Savings on manufacturing costs,,,,,,,,,$],[10.$ Proceeds from disposal of equipment,,,,,,,,,$],[$Total atter$-$taxx cash flow,$$,5,5,0,0.8,0,05,08,0\mathrm{.}1]]$

Required information

$[$The following information applies to the questions displayed below.$]$

Scientific Frontiers Corporation manufactures scientific equipment for use in elementary schools. In December of $200$ the company's management is considering the acquisition of robotic equipment, which would radically change its manufacturing process. The controller has collected the following data pertinent to the decision.

The robotic equipment would cost $$1,000,000,$ to be paid in December of $200.$ The equipment's useful life is projected to be eight years. The equipment is in the MACRS $5-$year property class. The company will use the MACRS accelerated depreciation schedule.

The robotic equipment requires software, which will be developed over a two$-$year period in $201$ and $202.$ Each software expenditure, which will amount to $$25,000$ per year, will be expensed during the year incurred.

A computer systems operator will be hired immediately to oversee the operation of the new robotic equipment. The computer expert's annual salary will be $$60,000.$ Fringe benefits will cost $$20,000$ annually.

Maintenance technicians will be needed. The total cost of their wages and fringe benefits will be $$150,000$ per year.

The changeover of the manufacturing line will cost $$90,000,$ to be expensed in $201.$

Several employees will need retraining to operate the new robotic equipment. The training costs are projected as follows:

$\backslash$table$[[201,$$$35,000$