3. Joe Roe is considering establishing a company to produce pellets for water pumps. A investment of $100,000 will be required for the plant and equipment, and $15.000 be required for working capital. It is expected that the property w last for 15 years, which time only the working capital part of the investment can be recovered. It is estimated that sales will be $200,000 per year and operating expenses will be as follows: Materials $40,000 per year Labor $70,000 per year Overhead $10,000 per year + 10% of sales per year Selling expense $5,000 per year Joe has a regular job paying $40,000 per year, but he will keep that job even if he establishes this company. If Joe expects to earn at least 15% on his capital, should thi investment be made? Use AW method. (10 points)