13-25 Decision to Replace Equipment Maxwell Company has an opportunity to acquire a new machine to replace one of its present machines. The new machine would cost $90,000, have a five-year life, and no estimated salvage value. Variable operating costs would be $100,000 per year. The present machine has a book value of $50,000 and a remaining life of five years. Its disposal value now is $5,000, but it would be zero after five years. Variable operating costs would be $125,000 per year.

Required: Ignore the time value of money and income taxes. Considering the five years in total, what would be the difference in profit before income taxes by acquiring the new ma- chine as opposed to retaining the present one?