The Konut Construction Company is considering acquiring a new earthmover. The mover$$s basic price is $$200,000,$ and it will cost another $$40,000$ to modify it for special use by the company. The earthmovers fall into the MACRS five year class. It will be sold after four years for $$60,000.$ The purchase of the earthmover will have no effect on revenues, but it is expected to save the firm $$70,000$ per year in before$-$tax operating costs,mainly labor. The firm$$s marginal tax rate is $25\%$ and its MARR is $8\%.$

$$ Is this project acceptable, based on the most likely estimates given?

$$ Suppose that the project will require an increase in net working capital of $$12,000,$ which will be recovered at the end of year $4.$ Taking this new requirement into account, would the project still be acceptable?