Novak Inc. wants to replace its current equipment with new high$-$tech equipment. The existing equipment was purchased $5$ years ago at a cost of $$129,000.$ At that time, the equipment had an expected life of $10$ years, with no expected salvage value. The equipment is being depreciated on a straight$-$line basis. Currently, the market value of the old equipment is $$41,100.$

The new equipment can be bought for $$176,000,$ including installation. Over its $10-$year life, it will reduce operating expenses from $$194,000$ to $$147,000$ for the first six years, and from $$207,500$ to $$191,100$ for the last four years. Net working capital requirements will also increase by $$20,200$ at the time of replacement.

It is estimated that the company can sell the new equipment for $$24,300$ at the end of its life. Since the new equipment's cash flows are relatively certain, the project's cost of capital is set at $9\%,$ compared with $15\%$ for an average$-$risk project. The firm's maximum acceptable payback period is $5$ years.

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$($a$)$

Calculate the projects net present value