ABC Co. has a machine that affixes labels to bottles.The machine has a book value of $80,000 and a remaining useful life of 3 years and no salvage value.A new, more efficient machine is available at a cost of $300,000 that will have a 5-year useful life with no salvage value.The new machine will lower annual variable production costs from $520,000 to $410,000.

ABC Co. has determined that the net savings over 3 years to replace the machine will be: