Your firm purchased the current machine it uses to manufacture widgets 2 years ago. The machine cost $690,000 at that time. Today the machine is worth $260,000. The machine could be operated for another 5 years. 5 years from now the old machine will be worth $60,000. The old machine machine generates revenues of $600,000 per year. The old machine has operating costs of $398,000 per year. The firm has a current investment in operating net working capital of $64,000.

The firm is thinking about buying a new machine to replace the old machine. The new machine will cost $1,002,000. The new machine can be operated of 5 years. 5 years from now the new machine will have a salvage value of $129,000. The new machine will generate revenues of $878,000 per year. The new machine will have operating costs of $493,000. The new machine requires an investment in operating net working capital of $101,000.

The tax rate is 24.5%. The CCA rate is 24%. The required rate of return is 12.4%.

What is the present value of the incremental salvage value?

Your answer should be correct to two decimal places.