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One year ago, your company purchased a machine used in manufacturing for $ 95 comma 000$95,000. You have learned that a new machine is available

One year ago, your company purchased a machine used in manufacturing for

$ 95 comma 000$95,000.

You have learned that a new machine is available that offers many advantages; you can purchase it for

$ 150 comma 000$150,000

today. It will be depreciated on a straight-line basis over ten 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 comma 000$60,000

per year for the next ten years. The current machine is expected to produce EBITDA of

$ 20 comma 000$20,000

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

$ 8 comma 636$8,636

per year. All other expenses of the two machines are identical. The market value today of the current machine is

$ 50 comma 000$50,000.

Your company's tax rate is

45 %45%,

and the opportunity cost of capital for this type of equipment is

10 %10%.

Is it profitable to replace the year-old machine?

The NPV of the replacement is

$nothing .

(Round to the nearest dollar.)

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