Elmdale Company 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.

Prepare a analysis showing whether the old machine should be retained or replaced.(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

options on the left is

1.) net savings over 3 years

2.) variable manufacturing costs

3.) new machine cost

4.) fixed manufacturing costs