GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for

instance if you compute $$77,342\mathrm{.}6478$ then ENTER $77343$ AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS $($use calculator memory functions$)$

TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting$/$rejecting your answer, but if you round in your intermediate calculations you

may be too far off.

Waldorf Manufacturing is operating a production facility, which will be closed in $3$ years. A decision needs to be made whether to keep the existing machine in

operation for $3$ more years, despite its significant wear and tear, or whether to acquire a new machine instead, only to be used for $3$ years before sold. The existing

machine could be sold for $$48,000$ today, or if kept for $3$ more years, could be sold for $$19,000$ in $3$ years. Its annual operating and maintenance costs are $$28,000.$

Replacing the existing machine with a new one would have no impact on revenues. Calculate the annual worth $($AW$)$ of keeping the defender for $3$ more years. Use

$6\%$ interest rate for discounting. $($Note: your answer should be viewed as the AW of the machine's costs, so entered as a positive number.$)$

Answer: