QS 25-15 (Algo) Keep or replace LO P5 Rory Company has an old machine with a book value of $81,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $109,000. Rory can sell its old machine now for $83,000. The old machine has variable manufacturing costs of $36,000 per year. The new machine will reduce variable manufacturing costs by $14,400 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? ped DOK Complete this question by entering your answers in the tabs below. int Required Required B Print erences Prepare a keep or replace analysis of income effects for the machines Income Increase Keep or Replace Analysis Replace (Decrease) ir replaced Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (los) Required B > QS 25-15 (Algo) Keep or replace LO P5 Rory Company has an old machine with a book value of $81,000 and a remaining five year useful life. Rory is considering purchasing a new machine at a price of $109,000. Rory can sell its old machine now for $83,000. The old machine has variable manufacturing costs of $36,000 per year. The new machine will reduce variable manufacturing costs by $14,400 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. Required A Required B Should the old machine be replaced? Should the old machine be replaced?