One yearago, your company purchased a machine used in manufacturing for $ 105 comma 000

$105,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $ 150 comma 000

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

40%; neither machine will have anylong-term salvage value. You expect that the new machine will produce earnings beforeinterest, taxes,depreciation, and amortization (EBITDA) of $ 35 comma 000

$35,000 per year for the next ten years. The current machine is expected to produce EBITDA of $ 25 comma 000

$25,000 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. Yourcompany's tax rate is 40 %

40%, and the opportunity cost of capital for this type of equipment is 12 %

12%. Should your company replace itsyear-old machine?