The Foundry is looking to purchase a new machine that has a purchase price of $5,000,000, an MACRS class life of 5 years and an estimated sale price of $300,000 at the end of year 3. The new machine would be sold at the end of its useful life (at the end of year 3). The new machine is expected to increase revenues by $500,000 per year and increase fixed and variable costs by $200,000 (total together) per year. The company will incur working capital requirements which include a one-time increase in inventory of $100,000, reversing the entry for NWC at the end of the project. The Company's tax rate is 30% and its company's required return is 10%