Two pastry chef friends wanted to develop a food processing business. Their new project entails important investments necessary for an optimal quality as well as for the safety of the cakes as for their taste. They have chosen to acquire a premises located in the industrial zone of their city.As for the equipment, they hesitate between two alternatives: buying new equipment or opting for second-hand equipment. They called on the services of an investment and financing consultancy. The consultant has already calculated the FCFs of the two projects, which you will find in the table below.

The consultant believes that the difference between the two projects should be based on the NVA. Calculate the VANG of the project with the second-hand equipment, the VANG of the project with the new equipment. Calculate the difference between these two values (VANG used equipment - VANG new equipment) and enter this value in the box below. The figure must be rounded to the nearest euro. If the difference is negative, put a - sign before the figure.

FCFs of the project with used equipment & FCFs of the project with new equipment

Year

0

1

2

3

4

5

Used equipment

-340000

77667

125000

154333

453667

New equipment

-690000

116833

164167

193500

226167

538333