X Company is trying to decide whether to continue using old equipment to make Product A or replace it with new equipment that will have lower operating costs. The following information is available:

• The new equipment will cost $54,000. Disposal value at the end of its 5-year useful life will be $5,500.
• The old equipment was purchased 3 years ago for $25,000. It can be sold immediately for $10,000 but will have zero disposal value in 5 years.
• Maintenance work, costing $4,000, will be necessary on the new equipment in Year 4.
• The new equipment will result in $8,500 of operating cost savings each year.

Assuming a discount rate of 8%, what is the net present value of replacing the old equipment with the new equipment?