Novak Inc. has an industrial sewing machine that it has used for the past $5$ years. The company is considering replacing the machine

with a faster model as it is starting to break down more often. As it will be faster and eliminate overtime, it will increase operating

income by $$4,300$ per year over its useful life of $7$ years.

If sold now, the current sewing machine would have a salvage value of $$15,700.$ If it is used for the remainder of its useful life, the

current sewing machine would have zero salvage value. The new sewing machine is expected to have zero salvage value after $7$ years.

Determine whether the current sewing machine should be replaced. $($Ignore the time value of money.$)($If an amount reduces the net

income then enter with a negative sign preceding the number, e$.$g$.-15,000$ or parenthesis, e$.$g$.(15,000).)$

The company

replace the sewing machine.