The initial investment required to replace an old machine with a new one. The new machine costs $62000. It will be depreciated under MACRS, using a 5-year recovery period. The 5-year MACRS depreciation rates are:

Year	1	2	3	4	5	6
Depreciation	20%	32%	19%	12%	12%	5%

The old machine was purchased 3 years ago at a cost of $44000 and was being depreciated under MACRS, using a 5-year recovery period. The firm can sell the old machine for $26000. The firm expects that a $18200 increase in current assets and an $2300 increase in current liabilities will accompany the replacement. The firms tax rate is 21%.

The new machine and the old machine are associated with the following EBITDA (earnings before interest, taxes, depreciation and amortization) over the 5-year life of the project:

Year	1	2	3	4	5
New machines EBITDA	110000	110000	110000	110000	110000
Old machines EBITDA	85000	85000	85000	85000	85000

Assume that the firm expects to liquidate the new machine at the end of its 5-year usable life, to net $23000 after paying removal and cleanup costs. Had the new machine not replaced the old machine, the old machine would have been liquidated after 5 years to net $5000. The firm expects to recover its net working capital investment upon termination of the project.

If the corporations capital structure is 50% debt and the rest of capital is equity, and the corporation will continue this capital structure to fund the investment on the new machine. Its cost of debt is 6.33% and cost of equity is 15%. What is the NPV if the company decides to do the replacement (when calculating WACC.)