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Splish Inc. wants to replace its current equipment with new high$-$tech equipment. The existing equipment was purchased $5$ years ago

at a cost of $$126,000.$ At that time, the equipment had an expected life of $10$ years, with no expected salvage value. The equipment is

being depreciated on a straight$-$line basis. Currently, the market value of the old equipment is $$44,200.$

The new equipment can be bought for $$174,010.$ including installation. Over its $10-$year life, it will reduce operating expenses from

$$192,300$ to $$146,600$ for the first six years, and from $$204,900$ to $$193,500$ for the last four years. Net working capital requirements

will also increase by $$21,000$ at the time of replacement.

It is estimated that the company can sell the new equipment for $$24,400$ at the end of its life. Since the new equipment's cash flows

are relatively certain, the project's cost of capital is set at $10\%,$ compared with $15\%$ for an average$-$risk project. The fim's maximum

acceptable paybackperiod is $5$ years.

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$($a$)$what is net present value?