Beethoven Company is considering the purchase of a piece of equipment with a cost of $1,400,000. The equipment is expected to have a useful life of ten years with a salvage value of $100,000 at the end of that time. The company expects to have the following cash revenues and expenses from the equipment over its life. BEETHOVEN COMPANY DATA FOR CAPITAL BUDGETING ANALYSIS Year Cash Revenues Cash Expenses 1 S 600,000 460,000 2 650,000 490,000 3 750,000 620,000 4 800,000 670,000 5 720,000 800,000 6 850,000 710,000 850,000 720,000 8 720,000 900,000 9 950,000 680,000 800,000 650,000 10