Aurora Services is considering a proposal to replace their current computer in order to allow their software to run more efficiently. Their minimum desired rate of return is $12\%.$ The old system, which has a current book value of $$1,800,$ could last $2$ more years. The new system costs $$4,000,$ is expected to last $2$ years, and will save the company $$2,500$ per year.

Using the appropriate table in Appendix A$,$ calculate the net present value of the new computer. Should the proposal be accepted or rejected?