Replacement Analysis

As older flange$-$lippers are robust and useful machines, this one can be sold for $$20,000$ at the end of its useful life.

and $7\mathrm{.}41\%($There will be no depreciation in its $5$ th year since it will already be fully depreciated.$).$

The old machine can be sold today for $$35,000.$ The firm's tax rate is $25\%,$ and the appropriate cost of capital is $15\%.$

nearest dollar. Cash outflow, if any, should be indicated by a minus sign.

$

Do not round intermediate calculations. Round your answers to the nearest dollar. Cash outflows, if any, should be indicated by a minus sign.

c$.$ What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest dollar. Negative value, if any, should be indicated by a minus sign.

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Should Everly replace the flange$-$lipper?