Your firm purchased the current machine it uses to manufacture widgets 4 years ago. The machine cost $560,000 at that time. Today the machine is worth $204,000. The machine could be operated for another 6 years. 6 years from now the old machine will be worth $63,000. The old machine machine generates revenues of $660,000 per year. The old machine has operating costs of $406,000 per year. The firm has a current investment in operating net working capital of $52,000.

The firm is thinking about buying a new machine to replace the old machine. The new machine will cost $1,222,000. The new machine can be operated of 6 years. 6 years from now the new machine will have a salvage value of $120,000. The new machine will generate revenues of $872,000 per year. The new machine will have operating costs of $482,000. The new machine requires an investment in operating net working capital of $105,000.

The tax rate is 38.5%. The CCA rate is 29%. The required rate of return is 11.0%.

What is the present value of the incremental operating net working capital recovered at the end of the project?