One yearago, your company purchased a machine used in manufacturing for $95,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $170,000 today. The CCA rate applicable to both machines is 20 %; neither machine will have anylong-term salvage value. You expect that the new machine will produce earnings beforeinterest, taxes,depreciation, and amortization (EBITDA) of $55,000 per year for the next ten years. The current machine is expected to produce EBITDA of $23,000 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 40 %, and the opportunity cost of capital for this type of equipment is 10%.

What is the NPV of replacement?