GPB Manufacturers Incorporated is deciding whether or not to replace a piece of machinery. The new proposed machine would result in annual savings due to being more efficient, but it will cost more upfront. Currently the disposal value of the existing machine is below its book value. This will result in recording a loss on disposal in our accounting records in the year of sale. In addition, the new machine produces better quality outputs. Therefore, our sales are expected to increase. See below for details of the replacement: Existing Machine Original Cost Remaining Book Value Remaining Life Disposal Value Today Disposal Value at End of Useful Life Annual Variable Costs to Operate Annual Revenues from Machine $100,000 $30,000 3 Years $5,000 $0 $120,000 $200,000 New Machine Purchase Price Expected Life Disposal Value at End of Useful Life $200,000 3 Years $0 $0 Useful Life Annual Variable Costs to Operate Annual Revenues from Machine $100,000 $240,000 Should we sell our existing machine any replace with the new one