"I'm not sure we should spend $552,000 for that automated welding machine," said Sandy Beach, president of the Superior Equipment Company. "That's a lot of money. Also, the manufacturer admits it will cost an additional $14,300 at the end of seven years in order to replace worn-out parts." "I admit it's a lot of money," said Betty DeRose, the controller. "But you know the turnover problem we've had with the welding crew. This machine will replace five welders at a cost savings of $115,900 per year. When you figure that this welding machine will last for 12 years, that adds up to a pile of savings. I'm sure the return will be greater than our 10% cost of capital. Plus, this new machine will be able to be sold in 12 years for $22,700." "Betty, you seem to have forgotten that we will need to purchase a maintenance contract for the duration of the machine's life. That will cost us $15,400 a year. However, let's give our figures to the people in the Capital Budgeting Division and have them do a present value analysis for us." Calculate the net present value of the automated welding machine.