Question: As Hal went over the numbers once again, he realized that he had made a major error. One of the machines, which were to be

As Hal went over the numbers once again, he realized that he had made a major error. One of the machines, which were to be shipped over to India as part of Siemens Technologies initial investment, had been accounted for at its book value of $500,000, even though it had an estimated market value of $700,000. The machine could be depreciated on a straight-line basis over 7 years. What effect would this error have on Hal’s analysis and recommendation?

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