Cohen Manufacturing Ltd. (CML), a company located in Calgary, produces steel piping for the oil and gas industry. CML's senior management is considering the purchase of a new pipe-forming machine that will improve CML's production. The new machine will cost $10,000,000. Delivery and installation will cost $1,250,000. The new machine is expected to have a useful life of 10 years, and a salvage value of $1,000,000. The old machine can be sold for $300,000. The new machine is expected to increase CML's revenue by $5,000,000 per year. Operating expenses of the new machine are 54% of sales. Interest costs for a bank loan to finance the new machine are expected to be $65,000 per year over its useful life. Accounts receivable are expected to increase by $350,000, accounts payable are expected to increase by $300,000, and inventory is expected to increase by $500,000. The working capital accounts are expected to return to previous levels at the end of the new machine's useful life. CML is subject to tax at a rate of 35%. The CCA rate for the new machine is 30% (Class 43) and it is subject to the half-year rule. The same CCA class already has assets in it, and the pool is expected to continue to have assets in it after the 10-year useful life of the machine. CML's capital structure is 50% debt and 50% equity, and its weighted average cost of capital is 12.3%

Required: Determine whether CML should proceed with purchasing the new machine using the net present value method. Round your calculations to the nearest dollar.