General Motors (or Toyota) is thinking of investing in new production equipment, which will cost $550 million in year zero, and will generate cost savings of $330 million in year 1, $220 million in year 2, and $165 million in year 3. After 3 years, the salvage value is zero. The cost of capital (discount rate) is 25% for General Motors and 10% for Toyota. (Due to GM's recent bankruptcy, investors are scared to lend it money, so GM has to pay much higher interest rates to attract capital).