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 12% per year. Determine the replacement value.

	Machine X	Machine Y
Market Value, $	?	86,000
Annual Cost, $ per Year	62,500	40,000 for year 1,increasing by 2000 per year thereafter.
Salvage Value	16,500	16,000
Life, Years	3	5

The replacement value is $ (?).