KriShly Ltd is considering manufacturing a new product for which it requires a new machine. The purchase price of the new machine is $650000. Inwards freight and installation costs would be $1500. It would cost $2000 to train an operator of the machine. Initial advertising to promote the new product would cost $5000. The new machine would replace an old machine with a net salvage value of $4000. The new machine would be installed at the same location as the old machine. It would occupy 24 square metres of a machine shop measuring 30 metres by 20 metres. Occupancy costs of the machine shop are $6000 per year. The initial outlay for the new product is