An Enterprise company has an annual demand capacity of

Last updated: 7/8/2022

An Enterprise company has an annual demand capacity of 40,000 units at a maintenance cost of $1. Currently, the company wants to reduce setup time by investing $111 to lower its current $1100 setup costs. It is hoped that this investment will result in a 2% reduction set up costs. Is this investment feasible if the expected rate of return on investment is 12%