Rob Thorton is a member of the planning and analysis staff for Thurston, Inc., an established manufacturer of frozen foods. Rick Ungerman, chief financial officer of Thurston, Inc., has asked Thorton to prepare an analysis of net present value for a proposed capital equipment expenditure that should improve the profitability of the southwestern plant. This analysis will be given to the board of directors for expenditure approval. Several years ago, as director of planning and analysis, Ungerman was instrumental in convincing the board to open the southwestern plant. However, recent competitive pressures have forced each of Thurston