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Replacement Analysis St. Johns River Shipyard's welding machineis 15 years old, fully depreciated, and has no salvage value.However, even though it is old, it is still functional asoriginally designed and can be used for quite a while longer. Thenew welder will cost $84,500 and have an estimated life of 8 yearswith no salvage value. The new welder will be much more efficient,however, and this enhanced efficiency will increase earnings beforedepreciation from $29,000 to $58,000 per year. The new machine willbe depreciated over its 5-year MACRS recovery period, so theapplicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%,11.52%, and 5.76%. The applicable corporate tax rate is 40%, andthe firm's WACC is 14%. Should the old welder be replaced by thenew one? Old welder be replaced. What is the NPV of the project?Round your answer to the nearest cent.