Your firm can purchase a machine for $12,000 to replace a rented machine. The rented machine costs $4,000 per year. The machine that you are considering would have a useful life of eight years and a $5,000 MV at the end of its useful life. By how much could annual operating expenses increase and still provide a return of 12% per year after taxes? The firm is in the 40% income tax bracket, and revenues produced with either machine are identical. Assume that the straight line method is utilized to recover the investment in the machine over its useful life with a salvage value of $5,000.