An instrument transformer manufacturer in an industrial town is considering the purchase of an ultrasonic welding machine WELDAL, to replace an existing manually operated machine. The existing machine cost Rs 12,000 two years ago and has been depreciated down to book value of Rs 10,000, using a 12-year life and no salvage. However, the machine can be sold in the market at present for Rs 4,000 only. The ultrasonic welder would improve the product quality enough to boost revenue from a present Rs 80,000 to Rs 1,00,000 per year. It would cost Rs 44,000 and have a ten-year life. Any salvage value on it would be consumed in the removal expenses. Another advantage of the ultrasonic machine is that by reducing annual labour costs, it would cut operating expenses from Rs 8,000 to Rs 3,000 annually. The manufacturer is in a 50% tax bracket and estimates the firm's cost of capital at 12%. Use present value analysis to determine whether the manufacturer should buy the new machine.