The BSN Corp. is currently considering replacing an inventory handling apparatus that was purchased only two years ago for a cost (purchase price, freight, and labor) of $500,000. This machine is currently being depreciated Straight-line during 5 years. The current system is running at capacity and demand is greatly exceeding the current ability of the company to ship product. Now, lost sales exceed 200,000 units per year and are increasing at a rate of 10% per year. The new machine will allow BSN to ship 200,000 new units (running shorts) per year after the first year, but only 50,000 additional units in the first year since there will be some down time. Each unit is expected to sell for $15 in the first year and variable costs are expected to be $8. Fixed costs and net working capital remain constant. Inflation is expected to increase both the price of the product and the variable costs by 3% per year after the first year. The new machine will cost $1,000,000, require shipping charges of $50,000, and installation costs of $125,000. A consultant whose fee amounted to $80,000 provided this data. The consultant is working on a long-term solution that entails designing and building a new distribution center. Thus, it is anticipated that the current system (with or without the new machine) will only be used for 3 more years. It is estimated that the old machine would have a salvage value of $40,000 now and $20,000 3 years from now. The new machine would have a salvage value of $120,000 3 years from now. Assuming a tax rate of 30% and a discount rate of 10%, should BSN purchase the new machine?