Glenn Corporation is considering the introduction of a new product, CS$.$

$$ CS was developed at an R&D cost of $$1$M over past $3$ years

$$ New machine to produce CS would cost $$2$M

$$ New machine lasts for $15$ years, with salvage value of $$50,000$

$$ New machine has a $10-$year useful life

$$ CS need to be painted; this can be done using excess capacity of the painting machine, which currently runs at a cost of $$30,000($regardless of how much it is used$)$

$$ Operating cost: $$40,000$ per year

$$ Sales: $$400,000,$ but cannibalization would lead existing sales of regular masks to decrease by $$20,000$

$$ Working Capital $($CS$)$: $$250,000$ needed over the life of the project

$$ Tax rate: $24\%$

$$ Opportunity cost of capital: $10\%.$

Required: Glenn has hired you to help them. Should Glenn go ahead with the production of CS$?$You must support your answer.