RORY COMPANY HAS A MACHINE..

Rory Company has a machine with a book value of S75.000 and a remaining five - year useful life. A new machine is available at a cost of S112, 500. and Rory can also receive $60,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $13.000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.)