You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $$166,000,$ and the equipment will be fully depreciated at the time of purchase. The machine would be sold after $3$ years for $$116,000.$ The machine would require an $$8,000$ increase in net operating working capital $($increased inventory less increased accounts payable$).$ There would be no effect on revenues, but pretax labor costs would decline by $$54,000$ per year. The marginal tax rate is $25\%,$ and the WACC is $10\%.$ Also, the firm spent $$4,500$ last year investigating the feasibility of using the machine.