The Gehr Company is considering the purchase of a new machine to replace an obsolete one. The machine being used for the operation has both a book value and a market value of zero; it is in good working order, however, and will last physically for at least another ten years. The proposed replacement machine will perform the operation so much more efficiently that Gehr engineers estimate it will produce after-tax cash flows (labor savings and the effect of depreciation) of $9,000 per year. The new machine will cost $40,000 delivered and installed, and its economic life is estimated to be 10 years. Its expected salvage value is zero. The firm's required rate of return is 10%, and its parginal tax rate is 40%. Should Gehr buy the new machine?