Table $11\mathrm{.}4$ Degnan Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. The following information is given. FACTS Existing Machine Proposed Machine Cost $=$ $$150,000$ Purchased $2$ years ago Depreciation using MACRS over A $5-$year recover schedule Current market value $-$ $$125,000$ Five$-$year usable life remaining Cost $=$ $$180,000$ Installation $=$ $$20,000$ Depreciation$$the MARCS $5-$year recovery schedule will be used Five$-$year usable life expected Earnings before Depreciation and Taxes Existing Machine Proposed Machine Year $1$ $$180,000$ Year $1$ $$190,0002$ $$160,0002$ $$190,0003$ $$160,0003$ $$190,0004$ $$160,0004$ $$190,0005$ $$160,0005$ $$190,0006060$ What is the payback on this replacement decision?