13-A new machine can be purchased for $1,000,000. It will cost $65,000 to ship and $35,000 to modify the machine to the companys intended usage. A $30,000 feasibility study done last year, indicated that the firm can employ an existing factory owned by the firm, which would have otherwise been sold for $150,000 after tax basis. The firm will borrow $750,000 to finance the acquisition. Total interest expense for 5-years is expected to approximate $250,000. What is the investment cost of the machine for capital budgeting purposes?

a) $1,100,000

b) $1,200,000

c) $1,280,000

d) $1,530,000

e) $1,350,000

f) None of the above

I will rate! I need to see the work/formulas. Thank you!