Rocko Incorporated has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and Rocko can also receive $38,000 for trading in the old machine. The old machine has variable manufacturing costs of $24,000 per year. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced?

A. Yes, because income will increase by $14,000 per year.

B. Yes, because income will increase by $23,000 in total.

C. No, because the company will be $23,000 worse off in total.

D. No, because the income will decrease by $14,000 per year.

E. Rocko will be not be better or worse off by replacing the machine.