$1$ point

A company is replacing an existing machine to improve efficiency. The change in free cash flows $($i$.$e$.,$ the incremental free cash flows$)$ expected from replacing this machine are forecasted as shown below. At the end of the final year shown, the company plans to sell the replacement machine, which will provide $$12,000$ after tax. The company has a $9\mathrm{.}33\%$ cost of capital $($i$.$e$.,$ the required rate of return is $9\mathrm{.}33\%).$ They plan to sell the existing machine which will net $$3,000$ after tax, and this will be used to pay for part of the replacement machine. What is the maximum amount, including the effect of using the net proceeds from disposition of the existing machine, which the company should spend for this new machine $($i$.$e$.,$ what is the highest pricetag the machine can have$)?$

$\backslash$table$[[$Year $0,$Year $1,$Year $2,$Year $3,$Year $4],[$Initial Investment,$$515,000,$$$423,000,$$$322,000,$$$242,000$