A manufacturing company's equipment has broken down and stopped working. The manager must decide if she should buy

new equipment or get the equipment fixed.

The equipment will produce a higher quality product, so it is expected to have annual incremental revenue of $$29,000.$ In

addition, the new equipment would operate in a more efficient manner, saving $$7,000$ in annual operating costs. Below are the

facts for this decision:

The incremental annual operating income gained by buying new equipment is $$55,000.$

Assume a discount rate of $10\%.$

Compute an NPV analysis for buying new equipment and fixing old equipment.

Round all present values to the nearest dollar. Enter outflows as negative numbers and inflows as positive numbers.

Negative numbers should be entered with a negative sign, not brackets. $(18$ marks $-1$ mark per answer$)$