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Ball Sports Inc. is considering an investment in one of two machines. The stitching machine will increase productivity from sewing 300 baseballs per hour to stitching 360 per hour. The contribution margin is $0.30 per baseball. Assume that any increased production of baseballs can be sold. The second machine applies a synthetic balata cover to golf balls. The golf ball machine will reduce labor cost. The labor cost saved is equivalent to $40 per hour. The stitching machine will cost $484,600, have an eight-year life, and will operate for 7,500 hours per year. The golf ball machine will cost $897,400, have an eight-year life, and will operate for 6,000 hours per year. Ball Sports Inc. seeks a minimum rate of return of 15% on its investments.