Replacement Analysis

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

life, so the applicable depreciation rates are $33\mathrm{.}33\%,44\mathrm{.}45\%,14\mathrm{.}81\%,$ and $7\mathrm{.}41\%.$

The old machine can be sold today for $$55,000.$ The firm's tax rate is $35\%,$ and the appropriate cost of capital is $14\%.$

$

a minus sign.

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

$

Should Everly replace the flange$-$lipper?