Cullumber 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:

It is estimated that the new machine will produce annual cost savings of $$90,100.$ The old machine can be sold to a scrap dealer for

$$9,000.$ 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 e$.$g$.-45$ or parentheses e$.$g$.(45).$ Do not leave any field blank. Enter $O$ for the amounts.$)$