Your company manufactures non-stick frying pans. However, it outsources the production of the glass covers for the pans. Until now, this has been a good option. However, your supplier has become unreliable and doubled his prices. As a result, you feel that now might be the time to start producing your own glass covers. At the moment, your company produces 200,000 non-stick pans per year. The producer charges you €2 per cover and you estimate the costs of producing your own cover to be €1.50. A new machine will be required to produce the covers and this costs €150,000 in the market. The machine will last for 10 years, at which point it will have no value. The expansion will require an increase in working capital of €30,000. Your company pays 28 per cent tax and the appropriate discount rate is 15 per cent. Inflation is expected to be 4 per cent per year for the next 10 years. Assume you use the 20 per cent reducing balance method for depreciation. Should you undertake this investment? State clearly any additional assumptions you have made in your analysis.