Rooney inc is considering the purchase of a new machine costing 700000. the machine useful life is expected to be 9 yrs with no salvage value. the straight line depreciation method will be used. The net increase in annual after tax cash flow is expected to be 154000. Rooney estimates its cost of capital to he 13%. ( The present value of a $ 1 annuity for 9 years at 13% is 5.132, and the present value of $1 to be received in 9 yrs is 0.333.)