The Solar Corporation is considering investing in a new panel manufacturing machine that has an estimated life of three years. The cost of the machine is $300,000 and the machine will be depreciated straight line over its three-year life to a residual value of $0. The new machine will result in sales of 2,000 panels in year 1. Sales are estimated to grow by 10% per year each year through year three. The price per panel that Solar Corp. will charge its customers is $180 each and is to remain constant. The panels have a cost per unit to manufacture of $90 each. Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that the Solar Corporation needs to hold 2% of its annual sales in cash, 4% of its annual sales in accounts receivable, 9% of its annual sales in inventory, and 6% of its annual sales in accounts payable. The firm is in the 35% tax bracket, and has a cost of capital of 10%.

The incremental EBIT in the first year for the Solar Corporation's project is closest to