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Your firm owns a large earth-moving machine and has contracts to move earth for $1 per...

Your firm owns a large earth-moving machine and has contracts to move earth for $1 per cubic yard. For $100,000 this machine may be modified to reach a production output of 10 cubic yard per hour, with no increase in operating costs. The earth-moving machine is expected to last another 8 years, with zero salvage value at the end of that time. Determine whether or not this investment meets the company objective of earning at least 15% return. Assume that the equipment works 2,000 hours per year.

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