Keonna's Karts
Income Statement
For the Year ended December 31, 202X
Sales Revenue	$42,000
Operating Expenses	$16,000
Gross Profit	$26,000
Other Expenses	$3,000
Net Income	$23,000

Keonna currently has extra cash of $5,000 which she wishes to use to grow her business in 202Y. By carefully budgeting, Keonna wants to decide on either:

A) another Go-kart which will perform about the same as the others (each Go-kart lasts an estimated five years).

B) a new repair machine which will cut down yearly operating expenses by 25% (expected to last six years).

Using the information above answer the below Questions:

1. What would happen if Keonna Decided on Option A?

2. What would happen in Keonna Decided on Option B?