1 pts D Question 4 "The All-Weather Gear Company is considering automating its needle- stitching system at a cost of $38,000. The firm expects to phase out the new stitching system at the end of 5 years due to changes in style. At that time, the firm could scrap the system for $4,000 in today's dollars. The expected net savings (revenue - expenses) due to automation also are in today's (constant) dollars: Year 1 $27,000; Year 2 $19,000; Years 3-5 $15,000. Use the 5-year MACRS to depreciate the system. The general inflation rate over the next 5 years is 2% per year. Assume the net savings and the scrap value are subject to this inflation rate. The firm's inflation-free MARR is 13%. The firm's tax rate is 21%. What is the net present value of this automation system? Don't forget to use the market interest rate