Question 2 Pronghorn Company manufactures automobile components for the worldwide market. The company has three large production facikies in Virginia, New Jersey, and Caifornia, 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. Bret has asked corporate controller Connie Carson to gather information about the costs and benefits of implementing CIM. Carson has gathered the fellowing data Initial equipment cost Working capital roquired at start-up Salvage value of existing equipment Annual aperating cost sevings Salvage value of new equipment at and of its uscful life Working capital released at end of its userul lite Useful life of equipment $7,716,000 771,600 $96,450 $1,080,240 257,200 771,600 10 yedrs Pronghorn Company uses a 12%, discount rate. Celculate the net present value of Pronghom's proposed investment in CJM. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971. Enter negative amounts using a negative sign preceding the number, e.g.-59,991 or parentheses, e.g- (59,991).) Net present value LINK TO TEXT LINK TO VIDEO use Excel or similar spreadsheet application to calculate te internal ratc of return on Pronghorn's proposed nvestment. (Round internal rate of return to 2 dedina, Places, eg. 15.25%.) Internal rate of return LINK TO TEXT LINK TO VIDE0 Andrew Burr, manager of the Virginia plart, has been looking over Carson's information and believes she has missed some important benefits of implementing CJM. Burr believes that implementing CIM will reduce scrap and rework costs by $192,900 per year, The CIM equipment will take up les noor s aco i the factory than the old e uipment re ing up 6,000 square eet of space for a planned new research f Clity. Inicial p ans cale or renting additional space for the ne facility, at a cost of $25.72 per square foot. Calculate a revised nat present value and intenal rate of return using this additional information. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, e.g. 58,971. Round internal rate of return to 2 decimal places e.g. 15.25%.) Net present value Internal rate of rsburn Docs your recommendation change as a result of this new information? Click if you would like to Show Work for this question: Oen Shaw Work