The Rustic Welt Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment costs $10.8 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 $9.80 a welt to $5.80. However, as the following table shows, there is some uncertainty about both the future sales and the performance of the new machinery: Pessimistic Expected Optimistic Sales (million welts) 2.2 2.3 2.5 Manufacturing cost ($ per welt) 7.80 5.80 4.80 Life of new machinery (years) 11 14 17 Conduct a sensitivity analysis of the replacement decision assuming a discount rate of 8%. Rustic does not pay taxes. Calculate the NPV.