QUESTION $-$ HOW DO I CALCULATE THE HIGHLIGHTED COLUMN?

If the Bowie plant is sold, those operations will need to shift to the main Largo facility. The CEO is proposing to acquire robotics$-$based sorting and distribution equipment to facilitate more cost$-$effective operations $($and be able to handle the increased workload$)$ at Largo.

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The CFO has asked you to evaluate the cash flow projections associated with the equipment purchase proposal and recommend whether the purchase should go forward. Table $2$ shows projections of the cash inflows and outflows that would occur during the first eight years using the new equipment.

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Keep the following in mind:

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Depreciation. The equipment will be depreciated using the straight$-$Robotics$-$based equipment proposal

handle the increased workload$)$ at Largo.

that would occur during the first eight years using the new equipment.

Keep the following in mind:

Depreciation. The equipment will be depreciated using the straight$-$line method over eight years. The projected salvage value is $$0.$

Table $2-$ After$-$tax Cash Flow Timelineline method over eight years. The projected salvage value is $$0.$

Taxes. The CFO estimates that company operations as a whole will be profitable on an ongoing basis. As a result, any accounting loss on this specific project will provide a tax benefit in the year of the loss.