Excelsior Industries is evaluating the purchase of a new manufacturing machine for its product line $($referred to as a "project" for the purpose of setting up the questions$).$ The machine has an estimated life of four years. The cost of the machine is $$250,000,$ and the machine will be depreciated using the straight$-$line method to a residual value of $$0.$

The machine is expected to generate additional sales of $10,000$ units in year $1,$ with sales growing by $8\%$ annually through year four. The selling price per unit will be $$120,$ and the cost of goods sold per unit will be $$75.$