Problem 12.11 Question 11 of 18 Check My Work Click here to read the eBook: Replacement Analysis REPLACEMENT ANALYSIS St. Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $30,000 to $54,000 per year. The new machine will cost $82,500, and it will have an estimated life of 8 years and no salvage value. The new machine will be depreciated over its 5-year MACRS ecovery period so the applicable depreciation rates are 209 32% 19% 12% 11% and 69 The applicable c oate tax rate is 40 % and he in t A 18%. The old machine has been fully depreciated and has no salvage value What is the NPV of the project? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. salvage value. The new machine 09, and the firm'sWACC is Should the old riveting machine be replaced by the new one? -Select