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Poltava, Inc. is considering disposing of an old machine (asset) that had an original cost $580,000. Straight-line depreciation expense for the machine is $68,000 per

Poltava, Inc. is considering disposing of an old machine (asset) that had an original cost $580,000. Straight-line depreciation expense for the machine is $68,000 per year, and it has an estimated remaining useful life of six years. The old machine can be sold for $120,000. A new machine with a purchase price of $548,000 is being considered as a replacement. It will have a useful life of six years and no residual value. Estimated annual variable manufacturing costs will be reduced from $165,000 to $93,000 if the new machine is acquired. Calculate the increase or decrease in Poltavas net income for the entire six years if the new machine is acquired.

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