Personal Engineering has purchased a machine that will see output increase from 1 million units to 5 million units. The variable cost per unit will decrease from $5.00 to $4.00. The sales price per unit is $9. Fixed costs will increase from $1,400,000 per annum to $8,500,000 per annum. Head office costs of $250,000 will be allocated to the new machine but the overall head office costs have not changed with the addition of the new machine. The new machine will require a 4 year, 6% interest only loan of $2m. Depreciation on the machine will be $350,000 per annum. The old Machine that was replaced and still had a useful life of 3 years had annual depreciation of $105,000. The tax rate is 10%. Calculate the FCF in Year 2. Show all workings.