You are evaluating a proposal to buy a new milling machine. The base price is $108,000, and shiping and installation cost would add another $12,500. The machine would be sold after 3 years for $65,000. The machine would require a $5,500 increase in net working capital (inventory). There would be no revenues of $44,000 per year and cost of $10,000 per year. The company's tax rate is 35%, and the WACC is 12%. Also the firm spent $5,000 last year investing the feasibility of using the machine. The opportunity cost of purchasing the machine is $2,000.