A medium-size industrial chemical producer is considering a $8 million extension to its processing plant. The estimated service life of the extension is ten years. The selling price of the product being produced is $510 per ton. The engineers expect to produce and sell an additional 25,000 tons of material per year. The average processing cost is $435 per ton in the first year.Processing cost is expected to decrease by $5 per ton each year. The market value of the extension is $4.5 million at the end of 10 years. Use the PW method with a MARR = 12% to determine if this extension is profitable.