19. The Indopax Company is considering investment in a machine that produces Product X. The machine will cost *500,000. In the first year 10,000 units of X will be produced and the price will be *20 per unit. The volume is expected to increase by 20 per cent and the price of the product by 10 per cent. The material used to manufacture the product is becoming more expensive. The cost of production is therefore expected to increase by 15 per cent. The production cost in the first year will be 10 per unit. Assume for simplicity that the company will charge straight-line depreciation on the machine for tax purposes. There will be no salvage values of the 5-year life of the machine. The tax rate is 35 per cent, and the discount rate is 20 per cent, based on the expected general inflation rate of 10 per cent. Should the machine be bought?