Oak Company bought a machine, which they will depreciate on the straight$-$line basis over an estimated useful life of seven years. The machine has no salvage value. They expect tne macnine operations of $$110,000$ in each of the seven years. Oak's minimum rate of return is $12\%.$ Information on present value factors is as follows:

Present value $$1$ at $12\%$ at the end of seven periods

$\mathrm{.}0452$

Present value of an ordinary annuity of $$1$ at $12\%$ for seven periods $4\mathrm{.}564$

Assuming a positive net present value of $$12,000,$ what was the cost of the mache?

$$480,000$

$$490,040$

$$502,040$

$$514,040$