Replacement Analysis The Gibert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of $650 for 5 years and $325 for the sixth year. Its current book value is $3,575, and it can be sold on an Internet auction site for $4,215 at this time. If the ofd steamer is not replaced, it can be sold for $800 at the end of its useful life. Gilbert is considening purchasing the Side Steamer 3000 , a higher-end steamer, which costs $12,200 and has an estimated useful life of 6 years with an estimated salvage value of $1,600. This steamer falis into the MACRS 5 -years class, so the applicabie depreciation rates are 20.00%,32.00%,19.20%,11.52%,11.52%, and 5.76%. The new steamer is faster and allows for an output expansion, so sales would rise by $2,000 per year; the new machine's much greater efficiency would reduce operating expenses by $1,600 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultanfously increase by $700. Gilbert's marginal federal-plus-state tax rate is 25%, and the project cost of capital is 10%. What is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest doliar, Should it replace the old steamer?