The Kish Corporation is considering the purchase of a new commercial oven. The original cost of the company's existing oven was $$250,000.$ The machine is now $10$ years old and has a current market value of $$50,000.$ The old oven is being depreciated over a $15-$year useful life to a zero estimated salvage value on a straight$-$line basis. Management is contemplating the purchase of a new oven that costs $$375,000$ with an estimated salvage value of $$25,000.$ Expected cash savings from the new oven are $$45,000$ a year $($before tax$),$ and the oven will require the company to increase working capital by $$15,000.$ Depreciation is on a straight$-$line basis over a $5-$year life, and the cost of capital is $9\mathrm{.}50\%.$ Assume a $21\%$ tax rate.

a$.$ What is the net present value of the new machine?

b$.$ Should the replacement be made?