Replacement Analysis The Gibert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of $700 for 5 years and $350 for the sixth vear, Its current bcok value is $3,850, and it can be sold on an Internet auction site for $4,420 at this time. If the old steamer is not replaced, it can be soid for $800 at the end of its useful life: Gibert is considering purchasing the 5 de Steamer 3000 , a higher-end steamer, which costs $11,200 and has an estimated useful life of 6 years with an estimated salvage value of $1,300. This steamer falis into the MACRS 5 -years clas5, so the applicable depreciation rates are 20.00%, 32.00%,19.20%,11.52%,11.52%, and $.76%. The new steamer is faster and allows for an output expansion, so sales would rise by $2,000 per year; the new mochine's much greater efficiency would reduce operating expenses by $1,500 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payoble would simultaneously increase by $700. Gilbert's marginal federal-plus state tax rate is 25%, and the project cost of captal is 14%. What is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar: Should it replace the old steamer? The old steamer: be ieplaced