Which of the two opportunities below do you recommend and why? They cannot choose to purchase both machines. The company has a hurdle rate of 15% for capital purchases Your company has the opportunity to purchase a new machine for $50,000 and stop using an outside vendor. The company knows how to perform this type of manufacturing process. The company will need to hire a new employee that costs $50,000 per year to operate the machine The company will stop paying $80,000 to a subcontractor that is currently making the parts for the next three years There is a salvage value of $9,000 in three years? Your company also has the opportunity introduce their product to an adjacent geographic market and is highly confident of the sales projections. Many of the company’s current customers also serve this market as well, (for this exercise we will assume no additional risk) The company needs to purchase a new machine for $100,000 to produce the new machine. The additional capacity will allow the company to sell $60,000 per year with a 50% gross margin for six years The machine will not have any value at the end of six years