Randi Corp. is considering the replacement of some machinery that has zero book value and a current market value of $4,100. One possible alternative is to invest in new machinery that costs $31,300. The new equipment has a 5-year service life and an estimated salvage value of $4,800, will produce annual cash operating savings of $10,700, and will require a $3,500 overhaul in year 3. The company uses straight-line depreciation.

Year	FV of $1 at 10%				FV of an ordinary annuity at 10%				PV of $1 at 10%				PV of an ordinary annuity at 10%
1		1.100				1.000				0.909				0.909
2		1.210				2.100				0.826				1.736
3		1.331				3.310				0.751				2.487
4		1.464				4.641				0.683				3.170
5		1.611				6.105				0.621				3.791
6		1.772				7.716				0.564				4.355

Required:

Prepare a net-present-value analysis of Randis replacement decision, assuming an 10% hurdle rate and no income taxes. Should the machinery be acquired? (Negative amounts should be indicated by a minus sign. Round calculations to the nearest dollar.)