Fictional investment and timing

A fictional service provider compares a machine purchase with keeping its present process. Buying requires1000currency units now and produces one incremental net inflow of1200at the end of one year. The exercise supplies a10percent discount rate, no additional working capital, no salvage and no tax effects. A manager reports a200profit and concludes that discounting is unnecessary because the project ends soon. Another wants to add a consultant fee already irreversibly paid last month. Neither statement has yet distinguished cash timing from accounting expense. The team must calculate value in the simplified model and document which assumptions require review before a real decision. The given rate and cash flow are fictional learning data, not promised market returns or an actual tax position.