ABC Boat Company is interested in replacing a moulding machine with a new improved model. The old machine has a salvage value of $$20,000$ now and a predicted salvage value of $$4,000$ in six years, if rebuilt. If the old machine is kept, it must be rebuilt in one year at a predicted cost of $$40,000.$

The new machine costs $$160,000$ and has a predicted salvage value of $$24,000$ at the end of six years. If purchased, the new machine will allow cash savings of $$40,000$ for each of the first three years, and $$20,000$ for each year of its remaining six$-$year life.

Required:

What is the net present value of purchasing the new machine if the company has a required rate of return of $14\%?$