The cafeteria you operate has a regular clientele for all three meals, seven days a week. You want to expand your product line beyond what you are currently able to offer. To do so requires the purchase of some additional specialty equipment costing $45,000, but you project a resultant increase in sales ( after deducting the cost of sales ) of about $8,000 per year for each of the next 8 years with this new equipment. Assuming a required rate of return (i.e. hurdle rate) of 8% should you pursue this opportunity? Why or why not? Do the analysis under two conditions: a. You are part of an income exempt enterprise b. The enterprise you are apart of is subject to a 40% corporate income tax rate, and the straight line, depreciable life of the equipment you are contemplating purchasing is five years.