National Furniture relies on technological inputs for it’s manufacturing process, but that technology is nearing obsolescence.  The company has been using the same machines to develop new product designs and to create the furniture manufacturing templates for almost a decade.  Costs have soared due to equipment break down occurring more and more frequently, and the decreased production capabilities during downtime have substantially reduced the ability to grow.  Therefore, the company proposes to purchase new, state-of-the-art technology that will cut repair and maintenance bills by about 75% in the first year alone.

In addition to the massive cost saving that can be realized in yearly operating expenditures, the company will be capable of producing more advanced product designs and replicating them more quickly.  This will enable the company to support the planned expanded sales effort.  The purchase of new technology is vital for long-term viability as a furniture manufacturer.