ABC motors currently produces $200000$ motors per year, and expects output levels to rise by $2\%$ per year. Each motor requires $1$ gear. ABC buys gears from an external vendor at $$2\mathrm{.}50$ each. However, the manager believes that it would be cheaper to make these gears in$-$house. In$-$house production costs are $$1\mathrm{.}80$ per gear. To make these gears, ABC needs to buy a $$700000$ machine. Assume straight$-$line depreciation over $10$ years. This operation also requires additional working capital of $$40000$ now. This working capital will be recovered at the end of Year $10.$ The machine can be scrapped for $$10000$ in year $10.$ ABC's tax rate is $21\%,$ and it has a discount rate of $14\%.$