One yearago, your company purchased a machine used in manufacturing for

$90,000. 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 %

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 $ 60 comma 000

$60,000 per year for the next ten years. The current machine is expected to produce EBITDA of $ 22 comma 000

$22,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is

$50,000. Yourcompany's tax rate is 45 %

45%, and the opportunity cost of capital for this type of equipment is 12 %

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