Your firm purchased the current machine it uses to manufacture widgets 5 years ago. The machine cost $695,000 at that time. Today the machine is worth $285,000. The machine could be operated for another 10 years. 10 years from now the old machine will be worth $74,000. The old machine machine generates revenues of $690,000 per year. The old machine has operating costs of $432,000 per year. The firm has a current investment in operating net working capital of $54,000.

The firm is thinking about buying a new machine to replace the old machine. The new machine will cost $1,160,000. The new machine can be operated of 10 years. 10 years from now the new machine will have a salvage value of $195,000. The new machine will generate revenues of $856,000 per year. The new machine will have operating costs of $483,000. The new machine requires an investment in operating net working capital of $115,000.

The tax rate is 21.0%. The CCA rate is 24%. The required rate of return is 11.2%.

What is the present value of the incremental salvage value?

Your answer should be correct to two decimal places.