The Rustic Welt Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment costs $10.7 million (the existing equipment has zero salvage value). The attraction of the new machinery is that it is expected to cut manufacturing costs from their current level of $9.70 a welt to $5.70. However, as the following table shows, there is some uncertainty about both the future sales and the performance of the new machinery:

	Pessimistic	Expected	Optimistic
Sales (million welts)	2.1	2.2	2.4
Manufacturing cost ($ per welt)	7.70	5.70	4.70
Life of new machinery (years)	8	11	14

Conduct a sensitivity analysis of the replacement decision assuming a discount rate of 11%. Rustic does not pay taxes. Calculate the NPV. out this in a same graph above with new numbers

Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter your answers in dollars not in millions. Negative amounts should be indicated by a minus sign.