Trevor's Tool Shop is considering investing in a new machine. The company currently has $500,000 per year in sales. The company has $265,000 per year in net income. If the company invests in the new machine, it expects sales to increase by an additional $100,000 in year 1. If Trevor wants to do a capital budgeting analysis of the project, he should begin the process of computing the cash flows for year 1 based on what number?

Group of answer choices

A. $265,000

B. $100,000

C. $600,000

D. $500,000