Carla Vista Timber Corporation uses a machine that removes the bark from cut timber. The machine is unreliable and results in a significant amount of downtime and excessive labor costs. Management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labor costs. Data are presented below for the two machines: New Machine $ 355,200 Original purchase cost Accumulated depreciation Estimated life Old Machine $ 326,400 220,800 5 years 5 years It is estimated that the new machine will produce annual cost savings of S 81,600. The old machine can be sold to a scrap dealer for $ 8,000. Both machines will have a salvage value of zero if operated for the remainder of their useful lives. Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (45). Do not leave any field blank. Enter for the amounts.) Retain Equipment Replace Equipment Net Income Increase/(Decrease) number eg.-45 or parentheses es (45). Do not leave any held Retain Equipment Replace Equipment Net Income Increase/(Decrease) $ $ $ V $ $ $ $ The company purchase the new machine. e Textbook and Media