A company wants to replace one of its machines. The company's ROR is 14% and taxes are not applicable.

It purchased its current machine 2 years ago for $50,000. It was expected to have a $5,000 salvage value after its 6 year useful life. The machine has a current book value of $35,000 using straight line depreciation. If the company sold the machine today, it would get $27,000. The machine costs $30,000 a year to operate.

The new machine would be purchased for $53,000, and would have a maintainence cost of $24,000 per year. This machine has a 4 year useful life, salvage value of $7,500, and uses straight line depreciation.

Applying NPV, should the company buy the new machine?