4. To reduce production start-up costs, Bodden Truck Company may manufacture longer runs of the same truck. Estimated savings from the increase in ef476 Part V Liquidity and Working Capital Management ficiency are $260,000 per year. However, inventory turnover will decrease from eight times a year to six times a year. Costs of goods sold are $48 million on an annual basis. If the required rate of return on investment in inventories is 15 percent, should the company instigate the new production plan?