The supervisor of the county Department of Transportation (DOT)is considering the replacement of some machinery. This machineryhas zero book value but its current market value is $840. Onepossible alternative is to invest in new machinery, which has acost of $39,400. This new machinery would produce estimated annualoperating cash savings of $12,700. The estimated useful life of thenew machinery is four years. The DOT uses straight-linedepreciation. The new machinery has an estimated salvage value of$2,040 at the end of four years. The investment in the newmachinery would require an additional investment in working capitalof $3,000, which would be recovered after four years. If the DOTaccepts this investment proposal, disposal of the old machinery andinvestment in the new equipment will take place on December 31,20x1. The cash flows from the investment will occur during thecalendar years 20x2 through 20x5. Use Appendix A for yourreference. (Use appropriate factor(s) from the tables provided.)Required: Prepare a net-present-value analysis of the county DOT’smachinery replacement decision. The county has a 10 percent hurdlerate. (Round your "Discount factors" to 3 decimal places and finaldollar amounts to whole dollars. Negative amounts should beindicated by a minus sign.)