Kossan Bhd. is considering a new expansion project with a fixed asset that costs $750,000. This fixed asset will be depreciated straight-line to zero over the projects five-year life, and the fixed asset will be sold for $85,000 at the end of the project. The fixed asset will save the company $195,000 per year in pre-tax operating costs and requires an initial investment in net working capital of $30,000. The companys tax rate is 21 percent. The required return is 13 percent. Should the company purchase the fixed asset? Explain your answer.