8. Problem 12.10 (Replacement Analysis) The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being deprediated on a straight-line basis, and it has 6 years of remaining Me. 1ts current book value is $2,100, and it can be sold for $2,600 at this time. Thus, the annual depreciation expense is $2,100/5=$350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful life. Dauten is offered a replacement machine which has a cost of $10,000, an estimated useful life of 6 years, and an estimated salvage value of $800. The replacement machine is. eligible for 100\% bonus depreciation at the time of purchase. The replacement machine would permit an output expansion, so sales would rise by $1,000 per year, even so, the new mschine's much greater efficiency would cause operating expenses to dedine by $1,500 per year, The new machine would require that inventories be increased by $2,000, but accounts payable would simultaneously increase by $500, Dauten's marginal federal-plus-state tax rate is 25%, and its wacc is.11\%4. What is the NPV of the incremental cath flow stream? Negative value, If any, should be indicated by a minus sign. Aound your answer to the nearest cent. Should the company replace the old machine