You are asked to evaluate a project which requires the purchase of an asset and you must determine the break$-$even level of the cost of the asset. The asset will be depreciated straight$-$line over its life and will have zero salvage value at the end of the project. The life of the project and asset are both $8$ years. The net working capital will increase by $$37,000$ at the beginning of the project but this can be fully recovered when the project ends. The firm's tax rate is $45\%$ and its discount rate is $8\mathrm{.}5\%.$ Revenue is expected to be $$160,000$ per year and costs are expected to be $45\%$ of revenue. What is the break$-$even level of the cost of the asset?

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