Because it fumes at room temperatures creates a very corrosive work environment. A machine working in that environment is deteriorating quickly and can be used for only one more year, at which time it will be scrapped with no salvage value. It was purchased 3 years ago for $88,000, and its operating cost for the next year is expected to be $46,000. A more corrosion-resistant challenger will cost $210,000 with an operating cost of $49,000 per year. It is expected to have a $60,000 salvage value after its 10-year ESL. What would minimum replacement value render the challenger attractive at an interest rate of 13% per year?

The minimum replacement value that would render the challenger attractive is $.