One year ago, your company purchased a machine used in manufacturing for $$120,000.$ You have learned that a new machine is available that offers many advantages; you can

purchase it for $$150,000$ 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 $$60,000$ per year for the next $10$ years. The current machine is expected to produce EBITDA of $$21,000$ 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 $$10,909\mathrm{.}09$ per year. All other expenses of the two machines are identical. The market value today of the current machine is $$50,000.$ Your company's tax rate is $40\%,$ and

the opportunity cost of capital for this type of equipment is $12\%.$ Is it profitable to replace the year$-$old machine?