The managers of PonchoParts, Inc. plan to manufacture engine blocks for classic cars from the 1960's era. They expect to sell 250 engine blocks annually for the next 5 years. The necessary foundry and machining equipment will require an outlay of $800,000. This amount will be depreciated straight line to zero over the projects life. The firm expects to be able to dispose of the manufacturing equipment for $150,000 at the end of the project. Labor and material costs total $500 per block, fixed costs are $125,000 per year. Assume a 35% tax rate and a 12% discount rate