olourun ltd is the major employer in the front hill area, where the firm is located. the company is considering the acquisition of a new production line. the equipment would cost $720 000 and installation cost would amount to $59 000. at the end of its 5-year life, it is expected to be disposed of at its salvage value of $70 000. the new equipment would allow the company to expand production significantly, which would require an increase in working capital of $90 000. if the purchase is made, the firm's maintenance costs would be reduced by $60 000 annually.