Hasselbaink Corporation is considering replacing an old milling machine with a newer machine that is much cheaper to operate. Relevant data for this decision are given in Table $111.$ Hasselbaink has a $35\%$ tax rate, a $11\%$ cost of capital, and uses straight$-$line depreciation.

$\backslash$table$[[$Table III $-$ Hasselbaink Corporation,,$],[,$Old Machine,New Machine$],[$Initial cost$,$$$25,000,$$$40,000],[$Current age,$5$ years,$],[$Remaining useful life,$5$ years,$5$ years$],[$Salvage value $($accounting and economic$),$$$5,000,$$$10,000],[$Current market value,$$10,000,],[$Operating costs,$$15,000/$ year,$$2,000/$ year$],[$Working capital required to support machine,$$3,000,$$$4,000]]$

Reference Ref $11-13$

What is the net present value of this capital budgeting project?

$$ $$9,372$

$$11,122$

$$13,302$

$$10,715.$