Required:

$($a$)$ Analyze the property, plant, and equipment and trucks accounts to determine their estimated

remaining useful lives.

$($b$)$ Determine the relevant cash flows for continuing to operate the factory until the end of $2013,$

instead of closing it immediately. $($c$)$ Calculate the net present value of continuing to operate the factory using your estimated cash flows

from part $($b$).$ Assume a discount rate of $7\%.$

$($d$)$ What is your recommendation to Johnson Control Systems Limited concerning the operation of

the factory?