Magic Timber and Steel Pty$.$ Ltd$.($Magic$)$ was established in $1999$ in Caloundra, Queensland, Australia, by John Davidson and Kelly Peters. Initially operating from a disused service station, the company specialized in selling $$seconds$$ timber at discounted prices to retail customers. After experiencing success, Magic purchased a significantly larger industrial property in $2002$ and transitioned into a timber yard. The company expanded its offerings to include hardware and delivery services using a Scania truck. Magic$$s growth coincided with a residential building boom on the Sunshine Coast, driven by rapid population growth $(10\%$ annually in $20022004).$ This expansion helped the company attract a core group of builder clients. In $2005,$ Davidson bought out Peters, who retained the Scania truck and associated debt, making Davidson the sole owner. By $2011,$ Magic reached peak sales but then experienced a steady decline. The downturn was due to multiple factors, including regional infrastructure issues, slowing tourism, reduced population growth $($under $4\%$ in $2011),$ and increased competition. A key threat came when Wesfarmers Limited opened a Bunnings Warehouse $($a major competitor similar to Home Depot$)$ just $2$ kilometers from Magic. Several builders with accounts at Magic went into liquidation, leaving bad debts that affected the company$$s financial health. In response, Davidson launched new marketing efforts in $20132014$ and added steel products to Magic$$s line. This shift required a $$300,000$ investment in a laser$-$cutting machine. Despite this, Davidson maintained a strategy of lean inventory, choosing to stock only core items to control costs. While this reduced overhead, it led to lost sales when customers could not find what they needed. Although the steel business showed promise, the company$$s timber operations were hindered by aging machinery, especially the large finisher. The manufacturer recommended refurbishment, but Davidson considered whether purchasing a new finisher with increased capacity and lower maintenance costs might be a better long$-$term investment. Davidson saw the potential new machine as an opportunity to restore Magic$$s former revenue levels. However, the machine required a significant capital outlay, prompting him to evaluate the investment using the Net Present Value $($NPV$)$ method. This involved estimating future cash flows from the investment and comparing them against the cost, discounted over time. Davidson recognized that if the machine increased business, the loan repayment could be manageable. However, he was also cautious about the risk of taking on new debt, especially given the competitive pressure from Bunnings and uncertainty in market demand. On the other hand, maintaining the status quo with aging equipment would likely lead to further decline in revenue. The core question Davidson faced: Should Magic invest in the new machine, taking on debt in the hope of reversing its downward trend, or play it safe and risk