Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $70,000and a useful life of15years. At the end of its useful life, the punch has no salvage value. Annual labor costs would increase $2,200using the gang punch, but annual raw material costs would decrease $12,000. MARR is5%/year.

What is the future worth of this investment?