BLK Inc. plans to buy and install a water-processing machine for massive freshwater production. The equipment costs $1.250.000 with a year life (assume straight-line depreciation. The annual fixed cost of this project is $240.000. Starting from next year, 200.000 tons of fresh water will be produced by this machine each year. The price for each ton of water sold to public is $4.00 in the first year and grows at 8% annually. On the other hand, the cost of each ton is stable at $1.40. At the end of the project, the machine will be actually sold at a salvage value of $600.000. Assuming tax rate is 20% and the required rate of return is 9%.