XYz Itd is considering the possibitity of manufacturing a particular component which at present is being bought from outside. The manufacture of the component would call for an investment of 77,50,000 in a new machine besides an additional investment of 50,000 in working Capital, The life of the machine would be 10 Years, with a salvage value of 250,000 . The estimated savings (belore tax) would be 1,80,000 per annum. The income tax rate is 50%. The company's required rate of return is 10%. Depreciation is provided on straight line basis. Suggest the firm whether this investment to be made or not. Show your detailed workings