One year$$ ago, your company purchased a machine used in manufacturing for $ $110000.$ You have learned that a new machine is available that offers many$$ advantages; you can purchase it for $ $150000$ today. It will be depreciated on a$$ straight$-$line basis over $10$ years, after which it has no salvage value. You expect that the new machine will contribute EBITDA$($earnings before$$ interest, taxes,$$ depreciation, and$$ amortization$)$ of $ $60000$ per year for the next $10$ years. The current machine is expected to produce EBITDA of $ $23000$ per year. The current machine is being depreciated on a$$ straight$-$line basis over a useful life of $11$ years, after which it will have no salvage$$ value, so depreciation expense for the current machine is $ $10$ comma $000\mathrm{.}00$ per year. All other expenses of the two machines are identical. The market value today of the current machine is $ $50$ comma $000.$ Your$$ company's tax rate is $35\%,$ and the opportunity cost of capital for this type of equipment is $12\%.$ Is it profitable to replace the$$ year$-$old machine?

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Part $1$

The NPV of the replacement is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $2$

Should your company replace its$$ year$-$old machine? $($Select the best choice$$ below.$)$

A$.$Yes $,$ there is a profit from replacing the machine.

B$.$No$,$ there is a loss from replacing the machine.