Question 9 - White Hills Ski Resort is studying the feasibility of installing a new lift to expand the capacity of its downhill-skiing operation. Site preparation would require an expenditure of $200,000 at the beginning of the first year. Construction would take place early in the second year at a cost of $800,000. The increased capacity should generate increased annual profits of $250,000 for the next 5 years. Should White Hills proceed with the project if it requires a return on investment of 7%?