One yearago, your company purchased a machine used in manufacturing for $120,000. 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 astraight-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 thandepreciation) of $35,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $22,000 per year. The current machine is being depreciated on astraight-line basis over a useful life of 11years, and has no salvagevalue, so depreciation expense for the current machine is $10,909 per year. The market value today of the current machine is $60,000. Yourcompany's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace itsyear-old machine?

The NPV of replacing theyear-old machine is $

nothing

. (Round to the nearestdollar.)