The Alameda County Times (a daily newspaper company) is considering introducing a new monthly magazine. The company anticipates that it will cost $25 million in initial cost to create and produce this magazine, and that it can depreciate this cost straight line to zero over the next 4 years. The equipment will be sold for $4 million at the end of 4 years. The company expects to price the magazine at an average of $3.50 an issue and also expects an average advertising revenue of $2.50 per issue sold. The printing and production costs are expected to be $3.25 per issue. The magazine will be produced by the existing staff of the newspaper resulting in an increase in actual payroll cost by 25% from its current level of $20 million. In addition, the company expects an additional working capital investment equal to 10% of first year revenues at the beginning of the project. The working capital investment will be recovered at the end of the project. The companys cost of capital is 12% and the marginal tax rate is 30%. Should the company accept the project if it expects to sell 3,300,000 copies of the magazine each year for the next 4 years?