ToneLock Ltd, security experts and lock manufacturers are considering entering into the production of impenetrable combination safes. The company has called you, their trusted financial advisor, to recommend whether to proceed with the project. The company tells you that the cost of the machinery required to manufacture these safes is $560,000, with an additional $40,000 to install. The machinery will be depreciated straight line on an annual basis over its entire useful life of 4 years to a salvage value of $30,000. The company also estimates that the building in which the machine is to be installed requires renovation expenses of $25,000 if the company is to go ahead with the project, which for tax purposes will be expensed at the beginning of the project. The project will generate pre-tax revenues in the first year of $200,000, with revenues expected to grow at a rate of 20% p.a., thereafter. Pre-tax expenses have been estimated to be 15% of pre-tax revenues. ToneLock Ltd also believes that they can receive $10,000 for the machinery at the end of its useful life. Given a required rate of return of 10% p.a.compounded semi-annually, and a corporate tax rate of 30%, do you recommend that ToneLock Ltd proceed with this project and commence manufacturing impenetrable safes? Why or why not? In answering this question, assume the initial investment is made today and cash flows are received or paid as stated in the