You are hired as a consultant to decide if your client should purchase a new, highly specialized, piece of equipment. The product to be produced this by equipment is forecast to have a total world wide demand of 15,000 units over the entire product life. The initial investment to acquire and install the equipment is $256,000. The variable cost to produce each unit will be $15 and the selling price for the finished product will be $30. Which of the following best describes the situation the firm is facing?