Maximillian Tubing Corp. is considering replacing an old machine with a new one that costs $1,460,000 plus $100,000 for shipping and installation. The new machine will be depreciated on a straight-line basis for an estimated life of 3 years although it will be used for only ten years. It will require $80,000 in initial net working capital. The NWC maintains its level of $80,000 in years 1 through 8. The NWC will decrease to $48,000 by the end of year nine, before fully recovered by the end of project's life. The old machine is fully depreciated but is expected be sold for $80,000 if the new machine is purchased. The old machine is currently generating $156,000 per year of EBIT and, if not replaced, is expected to keep generating the same EBIT for the next ten years. The new machine is expected to generate $430,000 in EBIT per year for 10 years. At the end of year ten it will be sold for $510,000. The applicable tax rate is 40%. The total net initial investment is