111 8 00 points 01 QS 25-15 (Algo) Keep or replace LO P5 Rory Company has an old machine with a book value of $85,000 and a remaining five-year useful life. Rory is considering purchasing new machine at a price of $112,000. Rory can sell its old machine now for $76,000. The old machine has variable manufacturing costs of $43,000 per year. The new machine will reduce variable manufacturing costs by $17,200 per year over its five-year useful lite (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. 100 Print Required A Required B Prepare a keep or replace analysis of income effects for the machines. Keep or Replace Analysis Revenues Sale of existing machine Costs Purchase of new machine Vanatia manufacturing costs Income (loss) Income increase Replace Decrease) if replaced Required> Save & Calt Check my work