Production of Air filters requires the machine (that produces air filters) to be turned off by the operator, after each piece is completed. The machinecoastsfor 15 seconds after it is turned off thuspreventing the operator from removing thepiecequickly before producing the next piece. Installing a brake could prevent the time lost. That would reduce thecoastingtime to 03 (three) seconds.The machine produces 55,000 filters a year. The time taken to produce one piece is 1 minute and 35 seconds, excluding coastingtime. The operator earns $8.00 per hour.In addition, $4 an hour is incurred for operating the machine as direct cost.For every 600 hours of operation, thebrakewill require servicing. The maintenance of the brake takes 40 minutes for the operator and will cost$45in parts andmaterial.Thebrake is expected to last 7500 hours of operation with proper maintenance and will have no salvage value. How much could be spent for the brake if the minimum attractive rate of return is 12% compounded annually.