Pharoah Company has a factory machine with a book value of $169,000 and a remaining useful life of 6 years. A new machine is available at a cost of $246,500. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $595,000 to $495,000. Prepare an analysis that shows whether Pharoah should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Net Income Keep Replace Increase Equipment Equipment (Decrease) $ $ $ Variable costs New machine cost $ The old factory machine should be