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Earnings before interest, taxes, depreciation and amortization Year New Machine Existing Machine 1 $75,000 $36,000 2345 2 75,000 33,000 75,000 30,000 75,000 27,000 75,000

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Earnings before interest, taxes, depreciation and amortization Year New Machine Existing Machine 1 $75,000 $36,000 2345 2 75,000 33,000 75,000 30,000 75,000 27,000 75,000 24,000 Should Canal Company invest in the new machine?

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