Cronin Corporation is planning to acquire a new machine, which will have a useful life of two years. However, there is a 10% probability that the machine will break down after only one year. There are two states of economy, good and bad, with the probability of occurrence 60% and 40% in any given year. If the economy is good, the after-tax cash flow from the machine is $20,000 annually, and if the economy is bad, the cash flow is only $15,000. The proper discount rate is 12%. What is the maximum amount that Cronin should pay for this machine?