One year​ ago, your company purchased a machine used inmanufacturing for $ 120, 000. You have learned that a new machineis available that offers many advantages and you can purchase itfor $ 140, 000 today. It will be depreciated on a​ straight-linebasis over 10 years and has no salvage value. You expect that thenew machine will produce a gross margin​ (revenues minus operatingexpenses other than​ depreciation) of $ 60,000 per year for thenext 10 years. The current machine is expected to produce a grossmargin of $ 23,000 per year. The current machine is beingdepreciated on a​ straight-line basis over a useful life of 11​years, and has no salvage​ value, so depreciation expense for thecurrent machine is $ 10,909 per year. The market value today of thecurrent machine is $ 45,000. Your​ company's tax rate is 45 %​, andthe opportunity cost of capital for this type of equipment is 10 %.Should your company replace its​ year-old machine?
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The NPV of replacing the​ year-old machine is(...) ​(Round to the nearest​ dollar.)
