Belkro Inc. is considering launching a new product that will generate an additional Operating Cash Flow to the firm of $120,000 per year for 5 years. The project requires an initial capital investment in new equipment of $500,000. The equipment will be depreciated to zero over the life of the project. The project will require an initial increase in inventory of $75,000. Inventory will return to its current level at the end of the project. The companys tax rate is 34% and its required return for this project is 8%.

Should the company accept the project? Why or why not?