The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $860,000, and it would cost another $22,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 0.3333%, 0.4445%, and 0.1481), and it would be sold after 3 years for $505,000. The machine would require an increase in net working capital (inventory) of $17,000. The sprayer would not change revenues, but it is expected to save the firm $321,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%.