Henredon purchases a high-precision programmable router for shaping furniture components for $250,000. It is expected to last 12 years and have a salvage value of $7,000. It will produce $70,000 in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 40%, the real after-tax MARR is 10%, and inflation is 3.9%.