Smith inc is thinking about launching a new product. The initial investment in equipment is $$800,000.$ The project has an estimated life of five years. The revenue per year is estimated to be $$300,000,$ and operating costs per year is estimated to be $$200,000.$ The project will take place on a land that the firm owns. The investment in the net working capital will be $$40,000$ at the beginning of the project, but $80\%$ of this will be recovered at the end of year $5,$ The equipment can be sold at the end of the project for $$300,000.$ There is an on$-$going feasibility study regarding the project. The feasibility study is done by Tim Consulting Group. They have been paid $$70,000$ a year ago, and they will be paid another $$80,000$ today. The company spent $$100,000$ to renovate the land three years ago. If this project does not take place, the company plans to rent this land for $4$ years, and will earn $$40,000$ per year from the rent $($the company will receive the rent at the end of each year with the first rent at the end of year $2).$ The cost of capital is $15\%.$ The tax rate is $30\%$ and the CCA rate for depreciation purposes is $30\%.$ Use a financial analysis to decide if the company should undertake this project. Show your work for credit