The Gilbert Instrument Corporaban is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years af remairang life. If kept, the steamer will have depreciation experises of $650 for 5 years and $325 for the sixth year. fts current book value is $3,575, and it can be sold on an Internet auctien site far 54,235 at this bime if the old steamer is not replaced, it can be sold for $800 at the end of ies useful ife. Gibert is considering purchasing the Side Sreamer 3000 , a hugher end steamer, which costs $11,400 and has an estimated useful life of 6 years with an estimated salvage value of 51,600 . This steamer falls into the MACRS 5 years class, so the applicable depreciation rates are 20.00%,32.00%, 19.20%, 11.52%, 11.52m, and 5,76%, The new. steamer is faster and allows for an output expansion, so sales would nise by $2,000 per year; the new machine's much greater elficiency would redoce operating eneribes by $1,800 per year. To support the greater sales, the new machine would require that inventories increase by. $2,900, but accounts payable would sirhultaneously increase by \$700. Gilbert's marginal federal-plus-state tax rate is 25%, and the project cast of capital is 13%. What is the APV of the groject? Do not round intermediate calculations. Round your answer to the nearest dollac. should it replase the old stesmer? The old steamer bo replaced. The Gilbert Instrument Corporaban is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years af remairang life. If kept, the steamer will have depreciation experises of $650 for 5 years and $325 for the sixth year. fts current book value is $3,575, and it can be sold on an Internet auctien site far 54,235 at this bime if the old steamer is not replaced, it can be sold for $800 at the end of ies useful ife. Gibert is considering purchasing the Side Sreamer 3000 , a hugher end steamer, which costs $11,400 and has an estimated useful life of 6 years with an estimated salvage value of 51,600 . This steamer falls into the MACRS 5 years class, so the applicable depreciation rates are 20.00%,32.00%, 19.20%, 11.52%, 11.52m, and 5,76%, The new. steamer is faster and allows for an output expansion, so sales would nise by $2,000 per year; the new machine's much greater elficiency would redoce operating eneribes by $1,800 per year. To support the greater sales, the new machine would require that inventories increase by. $2,900, but accounts payable would sirhultaneously increase by \$700. Gilbert's marginal federal-plus-state tax rate is 25%, and the project cast of capital is 13%. What is the APV of the groject? Do not round intermediate calculations. Round your answer to the nearest dollac. should it replase the old stesmer? The old steamer bo replaced