Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipment early in 2012 for $200,000. It is now early in 2015, and the manager of the Model Ships Division, Jeri Finley, is thinking about purchasing new equipment to make this part. The current equipment will last for four more years with zero disposal value at that time. It can be sold immediately for $40,000. The following are last year's per-unit manufacturing costs, when production was 8,600 ships:

Direct Materials	$3.90
Direct Labor	$3.55
Variable Overhead	$1.50
Fixed Overhead	$4.40
Total Unit Cost	$13.35

The cost of the new equipment is $130,000. It has a four year useful life with an estimated disposal value at that time of $45,000. The sales representative selling the new equipment stated, "The new equipment will allow direct labor and variable overhead to be reduced by a total of $2.20 per unit." Finley thinks this estimate is accurate, but also knows that a higher quality of direct material will be necessary with the new equipment, costing $0.21 more per unit. Fixed overhead costs will increase by $4,400.

Finley expects production to increase to 9,000 ships in each of the next four years. Assume a discount rate of 5%.

What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

I've tried what I have below and i'm not sure where my mistake is. Any guidence would be greately appreciated.

NPV of old cost per unit Year 1 Year 2 Year 3 Year 4 total $1.50 $12,900.00 $37,840.00 $114,810.00 $12,900.00 $37,840.00 $114,810.00 Variable overhead $12,900.00 $37,840.00 $114,810.00 $12,900.00 $37,840.00 $114,810.00 fixed overhead $13.35 total manufacturing cost Discount @ 5% 0.952 0.907 0.864 0.823 $109,342.86 $104,136.05 $99,177.19 $94,454.47 $407,110.58 NPV of new cost per unit Year 0 Year 1 Year 2 Year 3 Year 4 total 9000 Production cost of machine Direct materials add. materials DL and variable 9000 9000 9000 $130,000.00 $3.90 $0.21 $2.80 $35100.00 $1890.00 $25200.00 $35100.00 $1890.00 $25200.00 $35100.00 $1890.00 $25200.00 $35100.00 $1890.00 $25200.00 OH Sale of old $40,000.00 0 0 0 $45,000.00 machine fixed overhead net manufacturing $4,400.00 $42,240.00 $42,240.00 $42,240.00 $42,240.00 $90,000.00 104430 104430 104430 $59430.00 cost Discount @ 5% Net PV 0.952 0.907 0.864 0.823 $90,000.00 $99,457.14 $94,721.09 $90,210.56 $48,893.21 $423,282.00 -$16,171.42