Dreamz Unlimited (DU) intends to purchase a piece of machinery for $125,00,000. The project has a life of 5 years and the machine can be sold for $80,000 at the end of five years. In addition, the company expects to have to make an investment of $100,000 in Net Working Capital to operate the equipment (incremental working capital investment), which will be recovered at the end of the project, at the end of year 5. DU expects to increase its revenues by $750,000 per year. Its variable expenses are 25% of revenues, and it has incremental fixed costs of $125,000 per year. DU has a 30% tax rate and its discount rate is 9% and the CCA rate for the machinery is 20%. DU plans to utilize its own facility that is they currently lease for $40,000 per year. Due to this project; they will have to let the tenant go.

Please advise the management of DU on the decision with respect to the underlying project.