Sheridan Inc. wants to replace its current equipment with new high-tech equipment. The existing equipment was purchased 5 years ago at a cost of $120,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The equipment is being depreciated on a straight-line basis. Currently, the market value of the old equipment is $40,000. The new equipment can be bought for $173,000, including installation. Over its 10-year life, it will reduce operating expenses from $190,000 to $145,000 for the first six years, and from $200,000 to $190,000 for the last four years. Net working capital requirements will also increase by $20,000 at the time of replacement. It is estimated that the company can sell the new equipment for $24,000 at the end of its life. Since the new equipments cash flows are relatively certain, the projects cost of capital is set at 9%, compared with 15% for an average-risk project. The firms maximum acceptable payback period is 5 years.

(a) Calculate the projects net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)