James Inc. machine is unreliable, results in a significant amount of downtime, excessive labor costs, and is therefore expected to have no salvage value. Management is considering replacing the machine with a more efficient one, which will minimize downtime and excessive labor costs. Given the rapid pace of technological advances, the new machine would also have no salvage value. Data are presented below for the two machines: Old Machine New Machine Original purchase cost 200,000 $90,000 Accumulated depreciation 30,000 N/A Estimated useful life 5 years remaining 5 years Annual variable costs to operate $130,000 $120,000 Determine whether the company should purchase the new machine. (show all your work/computations) Retain Old Machine Buy New Machine Variable costs to operate New machine cost Total costs