A dryer that costs $$20,000$ was installed $7$ years ago, and it has now fully depreciated. This dryer can still be used for $4$ more years, and the scrap value will be zero.

Instead of continuing using the same dryer the company can purchase a new unit which costs $$30,000.$ It is estimated that if the new dryer is installed the annual operating costs will decrease by $$7,000,$ but the annual tax and instirance costs will increase by $5300.$ The $10-$year straight$-$line depreciation with $$3,000$ salvage value applies to the new dryer.

The income tax rate is $25\%.$ The old unit can now be sold for $$2,000,$ and the company requires an after$-$tax return of $15\%$ on capital invested for this type of project. Should the replacement be made at this time?