With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 13% per year. Determine the replacement value.

Machine X Machine Y Market Value, $ ? 82,000 Annual Cost, $ per Year 55,500 40,000 for year 1,increasing by 2000 per year thereafter. Salvage Value 12,500 19,000 Life, Years 3 5

The replacement value is $