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8. Problem 12.10 (Replacement Analysis) The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to the new tax legislation. This machine is being depreciated on a straigheline basis, and it has 6 years of remaining life. fts current book value is $2,100, and it can be sold for $2,500 at this time. Thus, the annual depreciation expense is $2,100/5= $350 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful life. Dauten is offered a replacement machine which has a cost of $10,000, an estmated useful life of 5 years, and an estimated salvage value of $800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase. The replacement machine would permit an output expansion, so sales would rise by 51,000 per year; even so, the new machine's much greater efficiency would cause operating expenses to decline by $1,000 per year. The new machine would require that invertories be increased by $2,500, but accounts payable would simultaneousiy increase by 5800 . Dauten's marginal federal-plus-5tate tax rate is 25%, and its wacc is 11%. What is the NPV of the incremental cash flow stream? Negative value, if any, should be indicated by a minus sign. Round your answer to the nearest cent. $ Should the company replace the old machine