Given the interest of the competitor in his laser cutter activity, Jason is considering not selling but quadrupling the production facility size and investing in 3 more systems at a cost of \($250,000.\) Given this new \critical mass," Jason believes revenues will \skyrocket" and reach \($90,000\) in the following year, and increase by \($7,500\) each year after that. Does this expansion make nancial sense?
His competitive edge will last 8 years at most, and it is estimated taxes will drop slightly from 40%.