A company's old machine has a book value of $$50,500$ and a remaining three$-$year useful life. The old machine could be sold now for $$26,600,$ and the company could buy a new machine for $$72,000.$ The old machine has varlable manufacturing costs of $$35,200$ per year. The new machlne's varlable manufacturing costs would be $$9,800$ lower per year over its three$-$year useful life.

Complete this question by entering your answers in the tabs below.

Required $A$

Required $B$

Prepare an analysis of income effects to keep the old machine or replace it with the new machine.

Note: Indicate amounts to be deducted with a minus sign.

$\backslash$table$[[$Keep or Replace Analysis,Keep,Replace,$\backslash$table$[[($ncome Increase$],[($Decrease$)$ if replaced$]]],[$Reverues$],[$Sale of existing machine$],[$Costs$],[$Purchase of new mashine$],[$Variable manufacturing evsts$],[$income $($oss$),,,]]$

Requlred : Should the old machines be replaced?