XYZ Company is considering the purchase of a new piece of

equipment and has gathered thePresent Value of a Lump$-$Sum

Present Value of an Annuity following information about

the purchase:

Initial investment $........................$ $$210,000$

Annual cost savings $.......................$ $ $50,000$

Salvage value in $7$ years $..................$ $ $7,000$

Overhaul of engine needed in $4$ years $......$ $ $20,000$

Working capital needed now $................?$

Cost of capital $...........................5\%$

Life of project $...........................7$ years

Income tax rate $...........................30\%$

If the new equipment is purchased, then the machine that

is currently being used can be sold at the time of buying

the new equipment for $$12,000.$

The working capital needed now will be released for

investment elsewhere at the end of the seven years.

The net present value of the new equipment is $$37,169.$

Calculate the amount of the working capital needed now.