Masters machine shop is considering a four-year project to improve its production efficiency. buying a new machine press for $425,000 is estimated to result in $169,000 in annual pretax cost savings. the press falls in the macrs five-year class, and it will have a salvage value at the end of the project of $69,000. the press also requires an initial investment in spare parts inventory of $28,000, along with an additional $3,500 in inventory for each succeeding year of the project. the shop’s tax rate is 23 percent and its discount rate is 10 percent.

You are a team of marketing consultants. it is 2008 and the great recession has struck. one of your clients is whole foods market (sometimes known as whole paycheck). wfm has come to you and asked for strategic advice on how to adapt their product and pricing strategies in light of the economic downturn: 1. advise wfm on the various approaches that could be taken to reducing price. be sure to consider potential psychological impact of price reductions on wfm consumers. 2. based on the options outlined in part 1, recommend an approach and support with marketing theory.