$11.$ Rory Company has an old machine with a book value of $$83,000$ and a remaining five$-$year useful life. Rory is considering purchasing a new machine at a price of $$113,000.$ Rory can sell its old machine now for $$61,000.$ The old machine has variable manufacturing costs of $$39,000$ per year. The new machine will reduce variable manufacturing costs by $$15,600$ per year over its five$-$year useful life.

$($a$)$ Prepare a keep or replace analysis of income effects for the machines.

$($b$)$ Should the old machine be replaced?

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Prepare a keep or replace analysis of income effects for the machines.

$\backslash$table$[[$Keep or Replace Analysis,Keep,Replace,$\backslash$table$[[$Income Increase$],[($Decrease$)$ if replaced$]]],[$Revenues$,,,],[$Sale of existing machine,,,$],[$Costs$,,,],[$Purchase of new machine,,,$],[$Variable manufacturing costs,,,$],[$Income $($loss$),,,]]$