ABC Ltd is considering purchasing a new machine that costs $314771. The machine will be depreciated to $0 using straight line method over a 5-year life. It will generate net cash flow of $126159 each year. An additional working capital of $51760 is required. This will be recovered at the end of the project life. The equipment will be sold for $81539 at the end of 5 years. The company tax rate is 30% and its cost of capital is