M.S. Computers is considering the viability of building a new production facility on a piece of property. The land is presently vacant and can be acquired for the current market value of $700,000. The facility can be built for $650,000 and equipment costing $400,000 needs to be purchased. Capital cost allowance rates on the building and equipment are 10% and 20% respectively. Operating savings from the new facility are expected to be $445,000 per year for the next 8 years. M.S. Computers expects to dispose of the property at the end of the 8 years for $1,400,000 (this amount is solely the anticipated value of the land). The firm's tax rate is 45% and its cost of capital is 14%.

Required: Using the Net Present Value approach, should M.S. Computers undertake the project?