Question: Standard equipment: Year Cash Flow Discount Factor Present Value 0 (500,000) (500,000) 1 300,000 2 200,000 3-10 100,000 NPV CAM equipment: Year Cash Flow Discount

Standard equipment: Year Cash Flow Discount Factor Present Value 0 (500,000) (500,000) 1 300,000 2 200,000 3-10 100,000 NPV CAM equipment: Year Cash Flow Discount Factor Present Value (2,000,000) (2,000,000) 1 100,000 2 200,000 3 300,000 4-6 400,000 500,000 8-10 1,000,000 NPV Standard equipment: Year Cash Flow Discount Factor Present Value 0 (500,000) (500,000) 1 300,000 2 200,000 3-10 100,000 NPV CAM equipment: Year Cash Flow Discount Factor Present Value C $ (2,000,000) (200,000) 1 100,000 2 200,000 300,000 4-6 400,000 500,000 8-10 1,000,000 NPV [key essay answer here]

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