You are considering replacing a machine in your factory. The current machine cost $$300,000$ seven years ago. It is being depreciated for tax purposes on a straightline basis over its ten year life. The old machine can be sold today for $$80,000$ or be worthless in three years. The new machine would cost $$400,000$ and it would depreciate straight line to zero over three years. If the new machine is purchased, it would be operated for three years and then sold for $$100,000.$ You are considering the new machine because it would result in labor savings of $$150,000$ per year. If you purchase the new machine, net working capital requirements will increase by $$30,000$ because of the need for additional spare parts. If your tax rate is $35\%$ and your cost of capital is $8\%$ per year, what is the net present value of purchasing the new machine, in thousands of dollars?

$$0$ thousand

$$73$ thousand

$$88$ thousand

$$42$ thousand

$$51$ thousand