A firm is thinking about launching a new product. The initial investment in equipment and other set-up is $600,000. The project has an estimated life of five years. The revenue per year is estimated to be $400,000, and operating costs per year is estimated to be $200,000. The project will take place on a land that the firm owns. The company spent $100,000 to renovate the land three years ago. If this project does not take place, the company plans to rent this land for five years, and will earn $50,000 per year from the rent (the company will receive the rent at the end of each year with the first rent at the end of year 1). The investment in the net working capital will be $40,000 at the beginning of the project, but 40% of this will be recovered at the end of year 4, and the rest at the end of year 5. The tax rate is 30% and the CCA rate for depreciation purposes is 20%. The equipment can be sold at the end of the project for $60,000. There is an on-going feasibility study regarding the project. The feasibility study is done by Tim Consulting Group. They have been paid $50,000 a year ago, and they will be paid another $50,000 today. The cost of capital is 10%. Use a financial analysis to decide if the company should undertake this project. (10 pts)