QS 23-15 (Algo) Keep or replace LO P5 Rory Company has an old machine wlth a book value of $77,000 and a remaining five-year useful Ife. Rory Is considering purchasing a new machine at a price of $103,000. Rory can sell its old machine now for $73,000. The old machine has varlable manufacturing costs of $34,000 per year. The new machine will reduce varlable manufacturing costs by $13,600 per year over its five-year useful life. (a) Prepare a keep or replace analysis of Income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Prepare a keep or replace analysis of income effects for the machines