Henry Jones is the owner of True Adventure Vacations, Inc. He is considering the purchase of computer equipment that will facilitate airline and hotel accommodations. He paid a consultant a $20,000 fee to identify the best computer system and to identify the best computer system and to identify related costs of the project. The computer will cost $300,000. Installation will cost $20,000 and training of personnel will cost $10,000. He will incur $50,000 in advertising costs to kick off the new improved services that will feature worldwide accommodations. He projects that there will be a $200,000 increase in sales annually each year over the life of the five-year project. Costs are 60% of sales. The computer has a five-year useful life and a salvage value of $30,000. Jones will use straight-line depreciation. Working capital investment is $10,000 and will be fully recovered at the termination of the project at the end of five years. The tax rate is 34% and the discount rate is 12%.

Should the investment be made?