Casa Grande Farms is considering purchasing multiple tractors for a total purchase price of $540,000. The tractors are depreciated using MACRS for a three-year asset (year 1 - 33.33%, year 2 - 44.45%, year 3 - 14.81%, year 4 - 7.41%); they will be sold after three years for $60,000. Use of the tractors will require an increase in net operating working capital (small parts inventory) of $10,000 at the time of purchase. The increase in net operating working capital will be "recovered" at the end of year 3. The tractors will increase EBITDA by $250,000 each year over the next three years. Two years ago the company spent $5,000 to investigate which tractors to buy. Interest expense is $3,000 per year. The company's marginal tax rate is 35% per year. Cost of Capital = 13%