St. Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will Increase earnings before depreciation from $30,000 to $52,00 per year. The new machine will cost $85,000 and will have an estimated life of 8 years and no salvage value. The new riveting machine is eligible for 100% bonus depreciation at the time of purchase . The applicable corporate tax rate is 25%, and the firm's WACC is 10% . The old machine has been fully depreciated and has no salvage value.

a. What is the NPV of the project? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest cent

b. Should the old riveting machine be replaced by the new one?