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 $160,000 today. The CCA rate applicable to both machines is 30%; neither machine will have anylong-term salvage value. You expect that the new machine will produce earnings beforeinterest, taxes,depreciation, and amortization(EBITDA) of $45,000 per year for the next 10 years. The current machine is expected to produce EBITDA of $24,000 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 35%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace itsyear-old machine?

What is the NPV ofreplacement?