$.$ Beloit Co$.$ is a manufacturer of mini$-$doughnut machine makers. Early in $2015$ a customer asked Beloit to quote

a price for a custom$-$designed doughnut machine to be delivered by the end of $2015.$ Once purchased, the

customer intends to place the machine in service in January $2016$ and will use it for four years. The expected

annual operating net cash flow is estimated to be $$120,000.$ The expected salvage value of the equipment at the

end of four years is about $10\%$ of the initial purchase price. To expect a $15\%$ required rate of return on investment,

what would be the maximum amount that should be spent on purchasing the doughnut machine?