A company is considering building a new and improved production facilityfor one of its existing products. it would be built on a piece of vacant land that the firm owns. this land was acquired four years ago at a cost of $500000. it has a current market value of $800000. the building can be erected for $600000. machinery (equipment) worth $120,000 needs to be bought.the company will finance the construction of the building and purchase of the equipment by borrowing $720,000 for 10 years at 10% interest. interest will be pai annualy and full amount of the loan will be repaid in one payment at the end of 10 years. the companys net working capitalwill increase by$100,000 if the new production facility is built. operating savings from the new production facility are expectedto be $300,000 per year for the next10 years. the total fair market value(salvage value)of the assetsat the end of the 10 yearsis expected to be $1000,000-one quarter of which attributable to the building and equipment will be amortized on a straight line basisover 10 years. the firm tax rate 40% and CCA will be taken on all depreciable assets at a rate of 20%. the firm weightd average cost of capital is estimated at 15%. should the company build the new and improved production facility?