One year$$ ago, your company purchased a machine used in manufacturing for $ $105$ comma $000.$ You have learned that a new machine is available that offers many advantages and that you can purchase it for $ $150$ comma $000$ today. The CCA rate applicable to both machines is $40\%$; neither machine will have any$$ long$-$term salvage value. You expect that the new machine will produce earnings before$$ interest, taxes,$$ depreciation, and amortization$($EBITDA$)$ of $ $40$ comma $000$ per year for the next $10$ years. The current machine is expected to produce EBITDA of $ $20$ comma $000$ per year. All other expenses of the two machines are identical. The market value today of the current machine is $ $50$ comma $000.$ Your$$ company's tax rate is $40\%,$ and the opportunity cost of capital for this type of equipment is $11\%.$ Should your company replace its$$ year$-$old machine?

One year ago, your company purchased a machine used in

manufacturing for $$105,000.$ You have learned that a new machine is

available that offers many advantages and that you can purchase it for

$$150,000$ today. The CCA rate applicable to both machines is $40\%$;

neither machine will have any long$-$term salvage value. You expect that

the new machine will produce earnings before interest, taxes,

depreciation, and amortization $($EBITDA$)$ of $$40,000$ per year for the

next $10$ years. The current machine is expected to produce EBITDA of

$$20,000$ per year. All other expenses of the two machines are identical.

The market value today of the current machine is $$50,000.$ Your

company's tax rate is $40\%,$ and the opportunity cost of capital for this

type of equipment is $11\%.$ Should your company replace its year$-$old

machine?

What is the NPV of replacement?

The NPV of replacement is $$.($Round to the nearest dollar.$)$