The management of Dusseldorf Manufacturing Company is currently evaluating a proposal to purchase a new, innovative drill press as a replacement for a less efficient piece of similar equipment, which would

then be sold. The cost of the equipment, including delivery and installation, is $$320,000.$ If the equipment is purchased, Dusseldorf will incur a $$10,000$ cost in removing the present equipment and revamping

service facilities. The present equipment has a book value of $$150,000$ and a remaining useful life of $10$ years. Because of new technical improvements that have made the present equipment obsolete, it now has

a disposal value of only $$70,500.$ Management has provided the following comparison of manufacturing costs:

Additional information follows:

Management believes that if the current equipment is not replaced now, it will have to wait $10$ years before replacement is justifiable.

Both pieces of equipment are expected to have a negligible salvage value at the end of $10$ years.

Management expects to sell the entire annual production of $500,000$ units.

Dusseldorf's cost of capital is $14\%.$

Required

Evaluate the desirability of purchasing the new equipment.

Note: Round your answer to the nearest whole dollar.