The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being depreciated on a straight$-$line basis,

and it has $6$ years of remaining life. Its current book value is $$2,400,$ and it can be sold for $$2,600$ at this time. Thus, the annual depreciation expense is $$2,\frac{400}{6}=$$$400$ per year. If the

old machine is not replaced, it can be sold for $$500$ at the end of its useful life.

Dauten is offered a replacement machine which has a cost of $$8,000,$ an estimated useful life of $6$ years, and an estimated salvage value of $$800.$ The replacement machine is eligible for

$100\%$ bonus depreciation at the time of purchase. The replacement machine would permit an output expansion, so sales would rise by $$800$ per year; even so$,$ the new machine's much

greater efficiency would cause operating expenses to decline by $$1,500$ per year. The new machine would require that inventories be increased by $$2,000,$ but accounts payable would

simultaneously increase by $$500.$ Dauten's marginal federal$-$plus$-$state tax rate is $25\%,$ and its WACC is $11\%.$

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

$

Should the company replace the old machine?