Rory Company has an old machine with a book value of $77,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $105,000. Rory can sell its old machine now for $81,000. The old machine has variable manufacturing costs of $35,000 per year. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year useful life