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please show all work Square Manufacturing is considering investing in a robotics manufacturing line. Installation of the line will cost an estimated $9.5 million. This

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Square Manufacturing is considering investing in a robotics manufacturing line. Installation of the line will cost an estimated $9.5 million. This amount must be paid immediately even though construction will take three years to complete (years 0.1 , and 2). Year 3 will be spent testing the production line and, hence, it will not yield any positive cash flows. If the operation is very successful, the company can expect after-tax cash savings of $6.5 million per year in each of years 4 through 7 . After reviewing the use of these systems with the management of other companies, Square's controller has concluded that the operation will most probably result in annual savings of $4.7 million per year for each of years 4 through 7 . However, it is entirely possible that the savings could be as low as $23 million per year for each of years 4 through 7 . The company uses a 14 percent discount rate. Use Exhibit A 8. Required: Compute the NPV under the three scenarios. (Round PV factor to 3 decimal places. Enter your answers in thousands of dollars. Negotive amounts should be indicated by a minus sign.) E \begin{tabular}{ccccccccccccc} Year & 22% & 24% & 25% & 26% & 28% & 30% & 32% & 34% & 35% & 40% \\ 1 & 0.820 & 0.806 & 0.800 & 0.794 & 0.781 & 0.769 & 0.758 & 0.746 & 0.741 & 0.714 \\ 2 & 0.672 & 0.650 & 0.640 & 0.630 & 0.610 & 0.592 & 0.574 & 0.557 & 0.549 & 0.510 \\ 3 & 0.551 & 0.524 & 0.512 & 0.500 & 0.477 & 0.455 & 0.435 & 0.416 & 0.406 & 0.364 \\ 4 & 0.451 & 0.423 & 0.410 & 0.397 & 0.373 & 0.350 & 0.329 & 0.310 & 0.301 & 0.260 \\ \hline 5 & 0.370 & 0.341 & 0.328 & 0.315 & 0.291 & 0.269 & 0.250 & 0.231 & 0.223 & 0.186 \\ 6 & 0.303 & 0.275 & 0.262 & 0.250 & 0.227 & 0.207 & 0.189 & 0.173 & 0.165 & 0.133 \\ 7 & 0.249 & 0.222 & 0.210 & 0.198 & 0.178 & 0.159 & 0.143 & 0.129 & 0.122 & 0.095 \\ 8 & 0.204 & 0.179 & 0.168 & 0.157 & 0.139 & 0.123 & 0.108 & 0.096 & 0.091 & 0.068 \\ 9 & 0.167 & 0.144 & 0.134 & 0.125 & 0.108 & 0.094 & 0.082 & 0.072 & 0.067 & 0.048 \\ 10 & 0.137 & 0.116 & 0.107 & 0.099 & 0.055 & 0.073 & 0.062 & 0.054 & 0.050 & 0.035 \\ 11 & 0.112 & 0.094 & 0.086 & 0.079 & 0.066 & 0.056 & 0.047 & 0.040 & 0.037 & 0.025 \\ 12 & 0.092 & 0.076 & 0.069 & 0.062 & 0.052 & 0.043 & 0.036 & 0.030 & 0.027 & 0.018 \\ 13 & 0.075 & 0.061 & 0.055 & 0.050 & 0.040 & 0.033 & 0.027 & 0.022 & 0.020 & 0.013 \\ 14 & 0.062 & 0.049 & 0.044 & 0.039 & 0.032 & 0.025 & 0.021 & 0.017 & 0.015 & 0.009 \\ 15 & 0.051 & 0.040 & 0.035 & 0.031 & 0.025 & 0.020 & 0.016 & 0.012 & 0.011 & 0.006 \end{tabular}

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