The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legislation. This machin

is being depreciated on a straight$-$line basis, and it has $6$ years of remaining life. Its current book value is $$2,100,$ and it can be sold for

$$2,600$ at this time. Thus, the annual depreciation expense is $$2,\frac{100}{6}=$$$350$ 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 $$9,000,$ 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 $$1,000$ per year; even so$,$ the new machine's much greater efficiency would cause

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

payable would simultaneously increase by $$800.$ 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?