39. Capital Budgeting II TG12 3 Beta Group is considering a 3-year machine with an initial cost of $250,000. The machine will help Beta Group generate revenues of $100,000 a year. The machine will be depreciated straight-line to a zero book value over its useful life. At the end of its life, the machine will be sold for an estimated $65,000. The marginal tax rate is 40%. $20,000 in extra inventory for spare parts and accessories is required throughout the 3 years. This will be recovered fully at the end of the life of the machine. Beta Group requires a 12% rate of return. Will the company take the project?