St. Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a new...

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St. Johns River Shipyards is considering the replacement of an8-year-old riveting machine with a new one that will increaseearnings before depreciation from $30,000 to $52,000 per year. Thenew machine will cost $87,500, and it will have an estimated lifeof 8 years and no salvage value. The new riveting machine iseligible for 100% bonus depreciation at the time of purchase. Theapplicable corporate tax rate is 25%, and the firm's WACC is 16%.The old machine has been fully depreciated and has no salvagevalue.
What is the NPV of the project? Negative value, if any, shouldbe indicated by a minus sign. Round your answer to the nearestcent.
$

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St. Johns River Shipyards is considering the replacement of an8-year-old riveting machine with a new one that will increaseearnings before depreciation from $30,000 to $52,000 per year. Thenew machine will cost $87,500, and it will have an estimated lifeof 8 years and no salvage value. The new riveting machine iseligible for 100% bonus depreciation at the time of purchase. Theapplicable corporate tax rate is 25%, and the firm's WACC is 16%.The old machine has been fully depreciated and has no salvagevalue.What is the NPV of the project? Negative value, if any, shouldbe indicated by a minus sign. Round your answer to the nearestcent.$