Amigo Lts is considering investing a new machine whichhas a capital cost of $25000.$ It has an estimated life of four years and a residual value of $$5000$ at the end of four years $.$The machine qualifies for tax and depreciation at the rate of $25\%$ per year on a reducing balance basis. An excisting machine wou;d be sold immediately for $$8000$ if the new machine were to be bought.. The excisting machine has a tax written down value of $$3000.$ The excisting machine generates annual net contrinution of $$30000.$ This is expected to increase by $40\%$ of the new machine is purchased. Amigo pays corporation tax on its profit at the rate of $30\%$ with half of the tax being payable in the year the profit is earned and half in the following year. The company is after tax cost of capital is $15\%$ per year.

calculate whether the investment is worthwhile should Amigo invest in the new machines