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Part $1$

Beloit Co$.$ is a manufacturer of$$ mini$-$doughnut machine makers. Early in $2022$ a customer asked Beloit to quote a price for a$$ custom$-$designed doughnut machine to be delivered by the end of $2022.$ Once$$ purchased, the customer intends to place the machine in service in January $2023$ and will use it for four years. The expected annual operating net cash flow is estimated to be$$ $$120,000.$ The expected salvage value of the equipment at the end of four years is about$10\%$ of the initial purchase price. To expect a$15\%$ required rate of return on$$ investment, what would be the maximum amount that should be spent on purchasing the doughnut$$ machine?