Goodwill Manufacturing Company operates a plant in Cebu City. The company has been notied that it must install pollution control equipment at the plant at: a cost of Psi-00,000 or else close the plant. The plant employs 400 people. virtually of whom will lose dieir jobs it' the plant closes. Goodwill Company will make a hoop-sum pennants of P000.000 no the people put out of jobs if the plant closes. An interested buyer is will to purchase the plant for P4040000, which equals to its book value. Goodwill company could shi to the Bacolod Plant if it closed in Cebu plant, with no increase in total cash production costs. {The increase in Bacolod's cash production costs equals the cash operating costs of the Cebu plant.) Honeyer, shipping costs will increase by P900,000 eternally because the Eacolod Plant is much farther away from customers than the Cebu Plant. The new equipment has a ten-year useful life with no salvage yahie. Straight litre depreciation is used for taspnrposos. Taxrate is 40% and cost of capital is 14%. REQUIRED: 1) Considering only monetary factors, determine whether Goodwill Company should install pollution control equipmtmt or close the plant. Justify your answer. 2} What other factors might be oonsida'cd by those interested in the decision