The Rustic Welt Company is proposing to replace its old welt-making machinery with more modern equipment. The new equipment costs $9.1 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 $8.10 a welt to $4.10. 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)	0.5	0.6	0.8
Manufacturing cost ($ per welt)	6.10	4.10	3.10
Life of new machinery (years)	10	13	16

Conduct a sensitivity analysis of the replacement decision assuming a discount rate of 14%. Rustic does not pay taxes.

Calculate the NPV.

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.

NPV of Replacement Decision table: (needs to be completed)

	Pessimistic	Expected	Optimistic
Sales (million welts)
Manufacturing cost ($ per welt)
Life of new machinery (years)

Please show work. I would like to understand the answer. Thank you!