5. NY Precision Inc. is considering a four-year project to improve its production efficiency. Six months ago, it contracted with Dr. Wright to provide a thorough study of whether there would be a need for this four-year efficiency project. The report was delivered one month ago and its cost was $50,000. The report suggested that the company should go ahead with the project subject to the company's more detailed financial analysis. Doing the project will require an initial investment in a machine costing $500,000 at time 0. The project will result in $200,000 in annual pretax cost savings. The machine falls in the MACRS 5-year class and it will have a salvage value at the end of the project of $60,000. At time 0, the project will also require an additional investment in inventory of $20,000 and account receivables of $10000, and accounts payable will also increase by $15000, every other current accounts remain the same. Except for this one time increase at time 0 of $20000, $10000, and $15000, the inventory, account receivable, and accounts payable levels will not change during the life of the project . If the company's tax rate is 20% and its costing of funding is 8%, should the company accept the project? (30 pts). The 5-year MACRS schedule is as follows: Year 1 2 3 4 5 6 5-year Class 20% 32% 19.2% 11.52% 11.52% 5.76%