NewArt Inc. makes and sells artistic prints. The firm is considering replacing one of its printers. Both the new and the old printer would last another 5 years. Annual sales will remain constant. The old printer has been fully depreciated and has no resale value. The new printer costs $48,000 today and will also have no resale value in 5 years. The new printer doesn't require any additional net working capital, but it produces after-tax cash flows from labor and material savings of $13,000 per year. The cost of capital is 10%.
What is the NPV of the replacement project?