Windsor Inc. wants to replace its current equipment with new high$-$tech equipment. The existing equipment was

purchased $5$ years ago at a cost of $$127,000.$ 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 $$43,300.$

The new equipment can be bought for $$176,980,$ including installation. Over its $10-$year life, it will reduce operating

expenses from $$191,700$ to $$146,500$ for the first six years, and from $$206,300$ to $$192,500$ for the last four years. Net

working capital requirements will also increase by $$20,000$ at the time of replacement.

It is estimated that the company can sell the new equipment for $$24,600$ 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 $9\%,$ compared with $15\%$ for an

average$-$risk project. The firm's maximum acceptable payback period is $5$ years.

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Calculate the net present value