ch 23 need to know

Rory Company has an old machine with a book value of $85,000 and a remaining five-year useful life, Rory is considering purchasing a new machine at a price of $113,000. Rory can sell its old machine now for $78,000. The old machine has varlable manufacturing costs of $41,000 per year. The new machine will reduce variable manufacturing costs by $16,400 per year over its five-year useful life. (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. Prepare a keep or replace analysis of income effects for the machines