Warmack Machine Shop is considering a four-year project to introduce a new product. The project requires a new machinery. Buying the new machinery for $350,000 with $30,000 in shipping and $30,000 to intall, is estimated to result in incremental annual revenue of $200,000. The incremental variable cost is likely to be $25,000 and the incremental fixed cost is estimated to be $50,000. The inflation rate of 2.5% is estimated to affect Revenue, variable cost and the fixed cost going forward. The project falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $55,000. As a part of the NWC requirment, an initial investment in inventory of $20,000 along with an additional $3,100 in inventory has to be made for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 9 percent, should the company implement the project?