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QS 23-15 Keep or replace LO A1 Rory Company has a machine with a book value of $105,000 and a remaining five-year useful life. A

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QS 23-15 Keep or replace LO A1 Rory Company has a machine with a book value of $105,000 and a remaining five-year useful life. A new machine is available at a cost of $116,500, and Rory can also receive $73,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)

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