Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs €2 million. The marketing department predicts that sales related to the project will be €1.2 million per year for the next 4 years, after which the market will cease to exist. The machine will be depreciated using a 20 per cent reducing balance method. At the end of 4 years it will be sold at its residual value. Cost of goods sold and operating expenses related to the project are predicted to be 25 per cent of sales. Howell also needs to add net working capital of €100,000 immediately. The additional net working capital will be recovered in full at the end of the project’s life. The corporate tax rate is 35 per cent. The required rate of return for Howell is 14 per cent. Should Howell proceed with the project?