Initial Recommendation and Rationale [based on your readinggthe case]: First off, there isn't much of a decision to make considering Mr. Pitts had already decided on what he wanted to do. Luckilyr the numbers backed up his assumptions of increasing the value and growth of the company. The NPV of the new sheeter runs in excess of $3 million as long as the WACC is below 13%. Production will increase and as will efficiency, therefore it is clear that the choice should be made to purchase the new sheeter