The Wingler Equipment Company purchased a machine $5$ years ago at a cost of $$100,000.$ It had an expected life of $10$ years at the time of purchase and an expected salvage value of $$10,000$ at the end of the $10$ years. It is being depreciated by the straight line method toward a salvage value of $$10,000.$A new machine can be purchased for $$150,000,$ including installation costs. Over its $5$ year life, it will reduce cash operating expenses by $$50,000$ per year. Sales are not expected to change. At the end of its useful life, the machine is estimated to be worthless. Straight line method of depreciation will be used with no salvage value.The old machine can be sold today for $$65,000.$ The firms tax rate is $34$ percent. The appropriate discount rate is $15$ percent.Required$1.$ What is the NPV of this project? Should the firm replace the old machine?