To meet the requirements for the capital intensive option, the old machinery will be traded in and there would be an additional cost of $2, 000,000 to accommodate the purchase of a different model of machinery that can operate with the alternative packaging materials. There would also be the increased cost of $200,000 each year from year 5 to source suitable packaging materials. The new machine will be evenly depreciated over the next 10 years. There will be no salvage value. Assume the production will start from year 6.

Hi, in previous part, the initial investment for install machine is 3 3 00 000, so in this part, the initial investment should be 3 300 000 + 2 000 000?

or year 1-4 is 3 300 000 and from year 6- 15, the initial investment should be 2 000 000 and year 5 is as year 0 in new operating cash flow?