=+The managing director is convinced that the expertise for the manufacture of widgets exists within Curt. He therefore proposes the purchase of the necessary machine tools and other items of equipment to produce widgets in-house, at a cost of £70,000. The net cash outflows associated with this course of action are:

Points in time (yearly intervals)

0 1

2 3

4 5

Cash outflows 70,000 80,000 82,000 84,000 86,000 88,000