Pierce Labs, located in Gaspe Bay, purchased a radio communication system three years ago for $310,000. It has a potential buyer for the system that is willing to pay $85,000. A new system will cost $390,000 and is eligible for a 15 percent ITC.

It is estimated the new system would provide the following stream of cost savings over the next five years:

Year	Cost savings
1	$99,000
2	88,000
3	77,000
4	66,000
5	55,000

The tax rate is 30 percent, and the estimated cost of capital is 12 percent.

Calculate the NPV. (Do not round the intermediate calculations. Round the final answer to the nearest whole dollar. Negative answer should be indicated by a minus sign. Omit $ sign in your response.)

NPV $

Should the new system be purchased?

• Yes

• No