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Part 8: Higgins Corporation (HC), a Detroit-based robot manufacturing company has developed a new advanced-technology robot called Helpmate, which incorporates advanced technology such as vision systems, tactile sensing, and voice recognition. These features allow the robot to roam the corridors of a hospital or office building without following a predetermined track or bumping into objects. HCs marketing department plans to target sales of the robot toward major hospitals. The robots will ease nurses' workloads by performing duties such as delivering medication and meals to patients. In order to manufacture Helpmates, Higgins requires a new plant and new equipment. At the end of the project, Higgins will sell the equipment, the building and the land. The timeline for these activities are given in Figure1 . Land is Construction ends Equipment purchased ConstructionManufacturing begins begins . Project ends 2 Figure 1: Project timeline In other words, construction on the plant will begin immediately and take two years. At the end of year 2 (same as the beginning of year 3), construction of the plant will be complete, equipment will be purchased, and production of the Helpmates will begin. At the end of year 8 everything will be sold Land is to be purchased immediately for $1.5M. Building construction is to be paid in two installments: $4M at the end of year 1, and S6M at the end of year 2. Equipment purchasing costs $13M. At the end of the project, the capital assets will be sold. The sale values are summarized in Table 1, along with the other expected cash flows. Negative cash flows imply money paid out. Higgins' annual required rate of return is 15%