1. As Hal went over the numbers once again, he realized that he had made a major error. One of the machines, which were to be shipped over to India as part of Siemens Technologies initial investment, had been accounted for at its book value of $500,000, even though it had an estimated market value of $700,000. The machine could be depreciated on a straight-line basis over 7 years. What effect would this error have on Hals analysis and recommendation? (Hint: you do not have to recalculate the NPV, just identify the impact of this change in cash flow, i.e. amount, positive or negative.)