Fine Corp. is considering the purchase of a new bottling machine for $50,000. The machine is expected to increase production, resulting in $24,500 new sales per year. The cost to operate the machine is $5,500. The machine will be depreciated on a straight-line basis to $0 over 10 years. The project will require a net increase of $15,000 in NWC at the beginning of the project and will return half that amount at the project's termination. In addition, Fine Corp. expects to sell the machine for $19,000 at the end of the project, seven years from now. If the appropriate discount rate is 10%, and the marginal tax rate is 40%, should the firm accept the project?

Assume the same information as above, except the company is currently renting its machine space for $2,000 per year. Hence, renting the warehouse precludes the use of the new machine, i.e. expansion. Should the firm accept the project?