Canal Company is contemplating the purchase of a new leather sewing machine to replace the existing machine. The existing machine was purchased four years ago at an installed cost of $$115,000$; it was being depreciated under MACRS using a $5-$year recovery period. The existing machine is expected to have a useful life of $5$ more years. The new machine costs $$203,000$ and requires $$8,000$ in installation costs; it has a five$-$year useable life and would be depreciated under MACRS using $5-$year recovery period. Canal can currently sell the existing machine for $$52,000$ without incurring any removal or cleanup costs. To support the increased business resulting from the purchase of the new machine, accounts receivable would increase by $$63,000,$ inventories by $$12,000,$ and accounts payable by $$72,000.$ At the end of $5$ years, the existing machine is expected to have a market value of zero; the new machine would be sold to net $$66,000$ after removal and cleanup costs and before taxes. The firm is subject to a $33\%$ tax rate and a WACC of $13\mathrm{.}36\%.$ The estimated earnings before depreciation, interest and taxes over the $5$ years for both the new and existing machine are attached.

Should Canal Company invest in the new machine?