Prisma Industries Ltd$.$ is considering replacing one of its machines with a newer and more efficient model. The existing machine was purchased twelve years ago, has $15$ years of useful life remaining and currently has a book value of $$195,000.$ If replaced, the machine could be sold as scrap for $$5,000.$ Maintenance and operating costs on the machine are $$95,000$ annually.

The new machine, which would have a useful life of fifteen years, has a purchase price of $$365,000$ and annual maintenace and operating costs of $$88,000$ annually. The employees would have to be trained on the new machine at an estimated cost of $$75,000.$ Prisma estimates that due to the increased efficiency, other variable manufacturing costs would be reduced by $$15,000$ per year. If the new machine is purchased, one employee would have to be laid off, which would save the company an additional $$82,000$ annually. Given this information, what is the net incremental benefit $($cost$)$ of replacing the machine?

Select answer from the options below

The question cannot be answered without knowing the remaining useful life of the existing machine

$($$$331,000)$

$($$$23,000)$

$$167,000$