Maxwell Company has an opportunity to acquire a new machine to replace one of its present machines.

New Machine:

The new machine would cost $90,000, have a 5-year life, and no estimated salvage value.

Variable operating costs would be $100,000 per year.

Old Machine:

The present machine has a book value of $50,000 and a remaining life of five years.

Its disposal value now is $5,000, but it would be zero after five years.

Variable operating costs are $125,000 per year.

Considering the five years in total, what would be the difference in profit before income taxes by acquiring the new machine as opposed to retaining the present one?

Ignore present-value calculations and income taxes.

Group of answer choices

($10,000)

($15,000)

$30,000

$35,000

$40,000