Kirksville Inc. is considering the purchase of a new production machine for $1,400,000. The machine has a 5-year life. Although the purchase of this machine will not produce any increase in sales revenues, it will result in a before-tax reduction of labor costs by $500,000 per year. To operate this machine properly, workers would have to go through a brief training session that would cost $40,000 after tax. In addition, it would cost $150,000 after tax to install this machine properly. Also, its purchase would necessitate $300,000 in initial net working capital for the project, and an additional investment in net working capital of $60,000 every year thereafter. All net working capital will be recovered when the project ends. The machine is expected to be sold for $200,000 as it is scrapped at the end of the project. Assume simplified straight-line depreciation and that this machine is being depreciated down to zero, a 20 percent marginal tax rate, and a required rate of return of 5 percent.