The Woodruff Corporation purchased a piece of equipment three years ago for $230,000. It has an asset depreciation range (ADR) midpoint of 8 years. The old equipment can be sold for $90,000. 
A new piece of equipment can be purchased for $320,000. It also has an ADR of 8 years. Assume the old and new equipment would provide the following operating gains (or losses) over the next 6 years.

YEAR New Equipment Old Equipment
1..................... $80,000 $25,000
2.................... 76,000 16,000
3.................... 70,000 9,000
4.................... 60,000 8,000
5....................... 50,000 6,000
6...................... 45,000 (7,000)

The firm has a 36 percent tax rate and a 9 percent cost of capital. Should the new equipment be purchased to replace the old equipment?