Retain/Replace Equipment: 4. On January 2, 2022, Lake Area Hospital purchased an MRI machine for $100,000 from Duhon Hospital in Baton Rouge, Louisiana. The machine had a five-year useful life with (4 years of life remaining in 2023). Annual operating costs are $55,000. Approximately one year later, the hospital is approached by a salesperson who indicated that a new MRI machine would save the hospital money. It would save the hospital $20,000 a year in operating costs over its four-year useful life. The new machine would cost $110,000 and has the same capabilities as the old machine purchased in 2022. The hospital agrees that both MRI machines are of equal quality. The new machine will have no salvage value, and the old machine could be sold for $36,000. Prepare an incremental analysis for the 4-year life of these assets to determine if Lake Area Hospital should retain or replace the MRI machine