Orange Auto Service Center is looking at purchasing an salvage value. Installation costs are estimated at $2,900 and freight charges at $820. The hoist will be used to replace mufflers and tires on automobiles. Orange Auto estimates that the new hoist will enable their mechanics to replace five extra muffles per week. Each muffler sells for $70 installed. The cost of the muffler is $35 and the labor cost to install a muffler is $10. Orange Auto estimates that the inventory of mufflers required to support the increased sales activity will cost about $1,000 and would be recovered at the end of the life of the hoist. Orange Auto can get a bank loan at 12% to purchase the hoist and is in a 25% marginal tax bracket. Sales tax after January 1, 2013 will be 8% which will apply to the purchase of the hoist and the sales of the mufflers. Should Orange Auto buy the hoist? What is the rational for your decision