Bears, Inc. acquired a Windy City machine for $80,000 earlier this year. The machine proved inadequate for Bears, Inc. production needs (i.e., 60,000 units per quarter). Two possible replacement machines are being investigated: Bears, Inc. has a contingency fund of $250,000 set aside for unexpected spending. $125,000 of the contingency fund was earmarked as a hedge (or cushion) in case of a shutdown caused by a natural disaster while the other $125,000 was designated for any "just in case" situation occurring during the year. A decision has been reached - Bears Inc. will acquire the Mitch Machine. While considering the above decision, Bears, Inc. management examined (and rejected) the possibility of selling the Windy City machine for $10,000. Instead they will donate the machine to a local school for use in their vocational training