The Darlington Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $10,000 per year. If the machine is not replaced, it can be sold for $5,000 at the end of its useful life.

A new machine can be purchased for $150,000, including installation costs. During its 5-year life, it will reduce cash operating expenses by $50,000 per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be worthless. The new machine is eligible for 100% bonus depreciation at the time of purchase.

The old machine can be sold today for $60,000. The firm's tax rate is 25%. The appropriate WACC is 9%.

Cash outflow should be indicated by a minus sign. Round your answer to the nearest dollar.

-92,500

What are the incremental cash flows that will occur at the end of Years 1 through 5? Round your answers to the nearest dollar.

What is the NPV of this project? Do not round intermediate calculations. Round your answer to the nearest cent.

$ _______