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Part $1$

One year$$ ago, your company purchased a machine used in manufacturing for $ $120$ comma $000.$ You have learned that a new machine is available that offers many advantages and that you can purchase it for $ $170$ comma $000$ today. The CCA rate applicable to both machines is $20\%$; neither machine will have any$$ long$-$term salvage value. You expect that the new machine will produce earnings before$$ interest, taxes,$$ depreciation, and amortization$($EBITDA$)$ of $ $35$ comma $000$ per year for the next $10$ years. The current machine is expected to produce EBITDA of $ $23$ comma $000$ per year. All other expenses of the two machines are identical. The market value today of the current machine is $ $50$ comma $000.$ Your$$ company's tax rate is $42\%,$ and the opportunity cost of capital for this type of equipment is $11\%.$ Should your company replace its$$ year$-$old machine?

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Part $1$

What is the NPV of$$ replacement?

The NPV of replacement is $$$

$$

enter your response here. $($Round to the nearest$$ doll