Pherosh Compary is corsidering the purchase of a new machine The involce price of the machine is $130,000, freight charges are estimated to be $5,000, and instaltation costs are expected to be $7,000. The salvape value of the new equipment is opected to be purchase the new muctine. As that time, the equipencht's salvage value would be zoro. If Pturoah purchines the new machine now, it cocnses, whthind without the new machine: reminthesare. 2. The new machinn is fater than the old muchine, and it is more efficient in tu we of materiaks, With the old machine, the Prepare an incremental analysis for the five years that shows whether Pharoah should retain the existing machine or buy the new one. (Ignore income tax effects.) (If an amount reduces the net income then enter with a negathe sign preceding the number or parenthesis, eg. 15,000,(15,000). Enter all other amounts as positive and subtract where necessary. Do not leove any answer field blank. Enter ofor amounts) Operatingincome Buy New Machine Sales \$ Less costs: Cost of goods sold Selling Administrative Operating income $ Sales Less costs: Cost of goods sold $ Selling Administrative Operating income \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & \begin{tabular}{l} Retain Old \\ Machine \end{tabular} & & \begin{tabular}{l} Replace Old \\ Machine \end{tabular} & & \begin{tabular}{l} Net Income \\ Increase (Decrease) \end{tabular} \\ \hline Operating income & $ & & 5 & & s & \\ \hline \multicolumn{7}{|c|}{ Cost of the new machine } \\ \hline Totals & s & & 5 & & s & \\ \hline \end{tabular} The new machine be purchased eTectbook and Media Suthicher Altempts 0 of 2 used sidemir Animer