As a financial manager, you are considering purchasing a new machine that will cost $$1$ million. It can be depreciated on a straightline basis for five years to a zero salvage value. You expect revenues from the machine to be $$700,000$ each year and expenses are expected to be $50\%$ of revenue. Working capital is expected to be $30\%$ of the revenue the following year.

If the company is taxed at a rate of $34\%$ and the appropriate discount rate for a project of this level of risk is $12\%,$ will the company invest in this new machine?