A company plans to replace a $7-$year$-$old equipment which is still in use with a new one. The original investment for the $7-$year$-$old equipment was $$50,000,$ and it is now fully depreciated. It can now be sold for $$10,000.$

A new equipment can be installed with for $$80,000,$ and it would save the company $$15,000$ per year on operating expenses. The $10-$year straight$-$line depreciation with no salvage value applies to the new equipment.

The income tax rate is $25\%.$ All costs other than depreciation are the same for both equipment. The company requires an after$-$tax return of $15\%$ on capital invested for this type of project. Should the replacement be made at this time?