Your corporation is considering replacing older equipment. The old machine is fully depreciated and cost $54,504 seven years ago. The old equipment currently has no market value. The new equipment cost $70,199. The new equipment will be depreciated to zero using straight-line depreciation for the four-year life of the project. At the end of the project the equipment is expected to have a salvage value of $10,426. The new equipment is expected to save the firm $28,813 annually by increasing efficiency and cost savings. The corporation has tax rate of 33.85% and a required return on capital of 8.96%.
Please enter your answers with two decimal places, as these are dollar amounts.
What is the NPV for this project?