Janko Wellspring Inc. has a pump with a book value of $36,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $57,000. Janko can also receive $9200 for trading in the old pump. The new pump will reduce variable costs by $13,200 per year over its four-year life. Should the pump be replaced?

A. No, because income will decrease by $13,200 per year.

B. No, because the company will be $5000 worse off in total.

C. No, Janko will record a loss of $18,400 if they replace the pump.

D. Yes, because income will increase by $5000 in total.

E. Yes, because income will increase by $5000 per year.