Rory Company has a machine with a book value of $109,000 and a remaining five-year useful life. A new machine is available at a cost of $117,000, and Rory can also receive $61,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $24,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Answer is not complete. Incremental Income From Replacing Machine Cost of new machine 56,000 X Reduction in variable manufacturing costs 120,000 Incremental income (incremental cost) $ 176,000 Should the machine be replaced? Yes