Press Publishing Company hires students from the local university to collate pages on various printing jobs. This collating is all done by hand, at a cost of $70,000 per year. A collating machine has just come onto the market that could be used in place of the student help. The machine would cost $160,000 and have a 14-year useful life. It would require an operator at an annual cost of $18,000 and have annual maintenance costs of $7,000. New roller pads would be needed on the machine in [a(34)] years at a total cost of $90,000. The salvage value of the machine in 14 years would be $60,000. For tax purposes, the company computes depreciation deductions assuming zero salvage value and uses straight-line depreciation. The collating machine would be depreciated over 14 years. Management requires a 14% after-tax return on all equipment purchases. The company