Lakeside Incorporated is considering replacing old production equipment with state$-$of$-$the$-$art technology that will allow production cost savings of $$7,500$ per month. The new equipment will have a five$-$year life and cost $$315,000,$ with an estimated salvage value of $$30,000.$ Lakesides cost of capital is $8\%.$

Required:

Calculate the present value ratio of the new production equipment.