Pluto Corp. is considering investing in an automated manufacturing line. Installation of the line will cost 2,440,000. This amount will be paid up front. It will be depreciated using straight-line depreciation and is expected to last four years and will be fully depreciated for tax purposes. The cost savings for each year are expected to be as follows:

Year 1 - 600,000

Year 2 - 800,000

Year 3 - 800,000

Year 4 - 900,000

At the end of year 4, management expects to discontinue the manufacturing line and sell the equipment for 400,000. The equipment will be fully depreciated when sold, so the entire sales price is a taxable gain. Pluto is subject to a 20% tax rate and using a discount rate of 8% when making investment decisions.Would you recommend that management invest in the equipment?