CT Computer Corp. is considering whether to begin offering customers the option to have their old personal computers recycled when they purchase new systems. The recycling system would require CT Computers to invest $600,000in the grinders and magnets used in the recycling process. Estimates suggest that for each system it recycles, it would generate $1.50 in incremental revenues from the sale of scrap metal and plastics. The machinery has a five-year useful life and will be depreciated using straight line depreciation toward a zero salvage value. CT Corp estimates that in the first year of the recycling investment it could recycle 100,000 computers and that this number will grow to 25% per year over the remaining four year life of the recycling equipment. CT Corp uses a 15% discount rate to analyze capital expenditures and pays a tax rate of 22%.