Final answer:
To determine if the company should work the extra shift, consider the opportunity cost of capital being 15%. If there are alternative investment opportunities with higher returns, it may be better to invest in those. However, if the alternative opportunities have lower returns, it would be more favorable to work the extra shift.
Step-by-step explanation:
In order to determine whether the company should work the extra shift, we need to consider the opportunity cost of capital being 15%. The opportunity cost of capital refers to the cost of forgoing an alternative investment opportunity in order to pursue another one. If the company can find another investment opportunity that yields a return higher than 15%, then it would be better to invest in that opportunity rather than working the extra shift.
For example, if the company has the option to invest in a project with a return of 20%, it would be more beneficial to invest in that project rather than working the extra shift. However, if the only alternative investment opportunity has a return lower than 15%, then it would be more favorable for the company to work the extra shift.