A widget manufacturer currently produces 200,000 units a year. It buys widgets lids from an outside supplier at a price of $2 a lid. The plant manager believes that it would be cheaper to make these lids rather than buy them. Direct production costs are estimated to be only $1.50 a lid. The necessary machinery would cost $150,000 and would last 10 years, depreciated using straight line method. The plant manager estimates that the operation would require additional working capital of $30,000 in year 1 and will be recoverable at the end of 10 years. If the company pays a tax rate of 21% and the opportunity cost of capital is 15%, would you support the plant managers proposal?