Scientific Frontiers Corporation manufactures scientific equipment for use in elementary schools in December of 20w the company's management is considering the acquisition of robotic equipment, which would radically change its manufacturing process. The control has collected the following data pertinent to the decision 1. The robotic equipment would cost $1,750,000, to be paid in December of 2020. The equipment's useful 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 2. The robotic equipment requires software, which will be developed over a two-year period in 20x1 and 20x2 Each software expenditure, which will amount to $34.000 per year, will be expensed during the year incurred. 3. A computer systems operator will be hired immediately to oversee the operation of the new robotic equipment. The computer experts annual salary will be $68.000. Fringe benefits will cost $24.000 annually 4. Maintenance technicians will be needed. The total cost of their wages and fringe benefits will be $200,000 per year. 5. The changeover of the manufacturing line will cost $84,000, to be expensed in 20x1. 6. Several employees will need retraining to operate the new robotic equipment. The training costs are projected as follows 20x144000 20x234.000 20x3 25,000 7. An inventory of spare parts for the robotic equipment will be purchased immediately at a cost of $54,000. This investment in working capital will be maintained throughout the eight-year life of the equipment. At the end of 20x8, the parts will be sold for $54.000 8. The robotic equipment's salvage value at the end of 20x8 is projected to be $87.500. It will be fully deprecated at that time 9. Aside from the cost specifically mentioned above management expects the robotic equipment to save $600.000 per year in manufacturing costs 10. Switching to the robotic equipment will enable Scientific Frontiers Corporation to some of its manufacturing machinery over the next two years. The following sales schedules projected Acquisition Cost of Equipment Sold 20x1 $225.000 20x2 380.000 Accumulated Depreciation at Time of Sale $ 130,000 245.000 $ 50,000 11. Scientific Frontiers Corporation's tax rate is 30 percent 12. The company's after tax hurdle rate is 8 percent Use Exhibit 16-9 for your reference Required: Prepare a year-by-year columnar schedule including all of the after-tax cash fows associated with the robotic equipment decision. Assume that each cash flow will occur at year-end. (Negative amounts should be indicated by a minus sign.) Type of Cash Flow 1. Aguon cost and depreciation 2 Share development 3. Computer exper's salary and fringe benefits 4. M enance technicians wages and bring benefits Is Changeover of line 6. Employee training 7. Investment in working capital spare parts) Savage value of equipment Tax effect of gain on sale Savings on manufacturing costs 10 D oment Se proceeds Taxect of gain or loss Total for tax cash flow S (1.750.000) S 0 S 0 $ 0 $ 0 $ 0 $ 0 $