Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:

Old Machine Cost of machine, 10-year life $89,070 8,915 Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation 23,445 Annual non-manufacturing operating expenses 6,105 Annual revenue 74,115 Current estimated selling price of machine 29,520 New Machine $119,640 Purchase price of machine, six-year life 19,965 Annual depreciation (straight-line) 6,820 Estimated annual manufacturing costs, excluding depreciation Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine