A farmer is considering replacing a labor$-$intensive machine system with a more capital$-$intensive

one. Adopting the new system is estimated to increase machinery operating expenses by about

K$210,000$ per year and to replace one hired laborer, whose annual salary is K$260,000.$ The new

machinery costs K$300,000$; however, the trade$-$in value of the old system isK$$100,000.$ Adopting

the new machinery will increase annual depreciation by K$40,000.$ Further data indicate an eightyear planning horizon, zero salvage value, a $35$ percent tax rate, and a $20$ percent after$-$tax cost of

capital. Use the NPV method to evaluate the new machinery system$$s profitability.