Company ABC is trying to make the best use of its cash by purchasing a new equipment costing $600,000. The life of the new equipment is estimated to be FOUR (4) years and is expected to generate an additional annual profits of $200,000. Company plan to sell the equipment for its salvage value of $50,000. The company's current hurdle rate is 10%. Evaluate with an example why companies sometimes choose a lower percentage return but higher absolute dollar value opportunity. (10 marks)