What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipmentearly in 2015 for $200,000. It is now early in 2019, and the manager of the Model Ships Division, Jeri Finley, is thinking about purchasing new equipment to make this part. The current equipment will last for six more years with zero disposalvalue at that time. It can be sold immediately for $40,000. The following are last year's total manufacturing costs, when production was 8,200 ships: Direct materials $31,570Direct labor 31,570Variable overhead 12,300Fixed overhead 35,670Total $111,110 The cost of the new equipment is $130,000. It has a six year useful life with an estimated disposal value at that time of $50,000. The sales representative selling the new equipment stated, "The new equipment will allow direct labor and variableoverhead combined to be reduced by a total of $2.10 per unit." Finley thinks this estimate ls accurate, but also knows that a higher quality of direct material will be necessary with the new equipment, costing $0.21 more per unit. Fixed overheadcosts will decrease by $4,000. Finley expects production to be 8,600 ships in each of the next six years. Assume a discount rate of 5%