after receiving a uct (Capital budgeting) SJ Industries is considering a product expansion projes an investmen ero favorable feasibility study for which it paid $5 million. The project requ machinery today of $16 million that can be depreciated for tax purposes straight-lie over four (4) years. Starting one year from now and ending 4 yea generate annual revenues of $17 million in year 1, $16 million in year 2,515 m and $14 million in year 4 pre-tax. Expenses are projected to be $12 million pr and includ investment of $1.0 million is required, and working capital will remain at to z illion in year 3, etax each year rs later, the project will e project. At the end of year 4 the company expects to recover 50% of the initial value of the working capital. Also at the end of year 4, the company expects to sell the machinery for $4 million. The firm is taxed at 40% and the appropriate discount rate is 10%. The firm has an internal policy that major investments should have a payback of 3 years or less. Should the company accept the project? e a $1.5 million allocation of corporate overhead costs. An immediate working capital th Decision