One year ago, your company purchased a machine used in manufacturing for $$110,000.$ You have learned that a new

machine is available that offers many advantages and you can purchase it for $$165,000$ today. It will be depreciated on

a straight$-$line basis over $10$ years and has no salvage value. You expect that the new machine will produce a gross

margin $($revenues minus operating expenses other than depreciation$)$ of $$45,000$ per year for the next $10$ years. The

current machine is expected to produce a gross margin of $$20,000$ per year. The current machine is being depreciated

on a straight$-$line basis over a useful life of $11$ years, and has no salvage value, so depreciation expense for the current

machine is $$10,000$ per year. The market value today of the current machine is $$50,000.$ Your company's tax rate is

$40\%,$ and the opportunity cost of capital for this type of equipment is $10\%.$ Should your company replace its year$-$old

machine?

The NPV of replacing the year$-$old machine is $

$($Round to the nearest dollar.$)$