RougeRiver Furniture Limited projects unit sales for a new line of office desk to be as follows:

Year 1 2 3 4 5

Sales 2,000 4,000 5,000 3,000 1,000 Production of office desks will require net working capital each year equal to 20% of the sales revenues of the following year. Any remaining net working capital will be fully recovered at the end of year 5. Total fixed costs are $100,000 per year, variable costs are $80 per unit, and the desks are priced at $400 each. The plant and equipment needed for production will cost $1,000,000, and will have CCA rate of 25% on declining balance, and at the end of 5 years can be sold for $100,000. Assume asset pool is closed (any gain or loss on the disposal of the plant and equipment will be taxable/tax deductible). The company has a marginal tax rate of 40% and requires a return of 15% on the projects of this type. Should the company go ahead with the new line of office desk project?