Information for two alternative projects involving machinery investments follows. Project $1$ requires an initial investment of $$268,000.$ Project $2$ requires an initial investment of $$170,000.$

Project $1$

Annual Amounts

Sales of new product: $$180,000$

Expenses

Materials, labor, and overhead $($except depreciation$)$: $85,000$

Depreciation$$Machinery: $40,000$

Selling, general, and administrative expenses: $28,000$

Income: $$27,000$

Initial investment: $$268,000$

Project $2$

Annual Amounts

Sales of new product: $$160,000$

Expenses

Materials, labor, and overhead $($except depreciation$)$: $52,000$

Depreciation$$Machinery: $38,000$

Selling, general, and administrative expenses: $40,000$

Income: $$30,000$

Initial investment: $$170,000$