Your firm purchased the current machine it uses to manufacture widgets 5 years ago. The machine cost $650,000 at that time. Today the machine is worth $287,000. The machine could be operated for another 8 years. 8 years from now the old machine will be worth $64,000. The old machine machine generates revenues of $615,000 per year. The old machine has operating costs of $433,000 per year. The firm has a current investment in operating net working capital of $62,000.

The firm is thinking about buying a new machine to replace the old machine. The new machine will cost $1,102,000. The new machine can be operated of 8 years. 8 years from now the new machine will have a salvage value of $132,000. The new machine will generate revenues of $936,000 per year. The new machine will have operating costs of $486,000. The new machine requires an investment in operating net working capital of $104,000.

The tax rate is 20.5%. The CCA rate is 28%. The required rate of return is 13.6%.

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

Your answer should be correct to two decimal places. Note if the answer is 10,500 it should be recorded as 10,500.00