A food manufacturing company intends to make a new product. However, its present facilities are inadequate. On its present site, land is available for a new building which will cost $800,000, and the necessary equipment installed will cost $420,000. The building and equipment is expected to have a total salvage value of $360,000 at the end of 10 years. The annual income from the new product is expected to be $550,000 and the annual disbursements for materials, labor, and all other expenses are estimated to be $310,000. If the company requires a minimum return of 12% from this product, should it invest capital on the new product?