ABC Ltd$.$ is considering replacing an old conveyor belt with a new design that will increase earnings before depreciation from $$20,000$ per year to $$51,000$ per year. The new design, including the installation charges, will cost $$100,000$ and has an estimated life of eight years. After eight years, it will have a salvage value of $$12,000.$ Today, the old conveyor has a book value of $$40,000,$ with a remaining life of eight years. If replaced, the old belt can be sold for $$15,000$ today. Should the company go ahead with the replacement if the firm's cost of capital for similar decisions is $12\%$ and the company falls in the $40\%$ tax bracket? The company will use straight$-$line depreciation for the new machine. The annual depreciation charged on the old machine is $$5000.$ Note: to avoid repetitive calculations, use annuity factor tables