Matthiesen, Inc. is planning to invest $70,000 (before tax) in a training program. The $70,000 outlay will be charged off as an expense by the firm this year (year 0). The returns from the program is in the form of greater productivity and a reduction in employee turnover are estimated as follows (after tax basis): Years 1 - 10 $12,000 per year Years 11 - 15 $26,000 per year The company has estimated its cost of capital to be 7%. Assume the marginal tax rate for the firm is 40%. Should the firm undertake the training program? Why or why not? A/