Use the information from Luke and James to compute the cash flows for the project.

Respond to the following scenario with your thoughts, ideas, and

Luke:
• Invest $100,000 in equipment
• Receive $60,000 for the sale of existing equipment

James:
• Invest $80,000 in technology upgrades

Cash Flows:
Initial Investment (Equipment + Technology Upgrades) = 100,000 + 80,000 = 180,000
Revenue from Sale of Existing Equipment = 60,000
Net Cash Flow = Revenue (60,000) – Initial Investment (-180,00) = -120,00