Hobbs, the number 1 small domestic appliance brand in the UK, is willing to expand its plant. According to its manager's estimations, the new building will cost 7 million ponds and will produce 100,000 automatic kettles per year. Each kettle has a production cost of 20 pounds and can be sold to the public for 50 pounds. The fixed costs for the company are 1,500,000 pounds per year. Also, Hobbs has access to one investment of similar risk profile yielding a return equal to 15%. The new plant will be operating for a 4 year period before Hobbs sells the plant for 1,000,000 pounds. 

Assume there is no tax. Should Hobbs undertake the expansion?