Boomerang Inc. is considering a new 4-year project. It will require the purchase of a $4.0 million machine with an additional $100,000 for shipping and $200,000 for installation. The machine will be depreciated straight-line to zero over its four-year economic life, after which it will have no salvage value. The project is expected to have sales of 100,000 units per year at a price of $20 per unit. There will be fixed costs of $20,000 per year and variable cost per unit of $6.25 per unit. The companys marginal tax rate is 35%. Their cost of capital is 10 percent.