Sandcastles, Inc.s management has recently been looking at a proposal to purchase a new brick molding machine. With the new machine, the company would not have to buy bricks. The estimated useful life of the machine is 15 years, and the purchase price, including all setup charges, is $400,000. The residual value is estimated to be $40,000. The net addition to the companys cash inflow as a result of the savings from making the bricks is estimated to be $70,000 a year. Sandcastles management has decided on a minimum rate of return of 14 percent.

Compute the net present value of the piece of equipment. Use Table 1 and Table 2 . Round your answer to the nearest dollar. $

Should the company purchase it?