X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $60,000 per year; operating costs with the new machine are expected to be $49,000 per year. The new machine will cost $74,000 and will last for 5 years, at which time it can be sold for $4,500. The current machine will also last for 5 more years but will have zero salvage value. Its current disposal value is $5,000.

Assuming a discount rate of 7%, what is the net present value of replacing the current machine?