A company currently produces 90 machines per year that each sell for $250,000. The company is financed totally with equity that costs 12% per year and its assets total $8 million. The variable cost of producing each machine is $200,000 and the fixed production costs are $3 million per year. Because of tax loss carry-forwards, the companys effective tax rate is 0%. The company is considering a $4 million investment that would allow sales to increase by 25 machines per year, decrease variable costs by $10,000 per machine, and increase fixed costs by $3 million. What would be the rate of return on the investment? Should the company make the investment? No