=+The machinery has a life of five years and can be sold for scrap at the end of its life for £10,000. This is not included in the £88,000 for year 5. The installation of the new machine will require the attention of the technical services manager during the first year. She will have to abandon other projects as a result, causing a loss of net income of £48,000 from those projects. This cost has not been included in the above figures.