Rory Company has an old machine with a book value of $81,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $111,000. Rory can sell its old machine now for $71,000. The old machine has variable manufacturing costs of $36,000 per year. The new machine will reduce variable manufacturing costs by $14,400 per year over its five-year useful life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a keep or replace analysis of income effects for the machines. Keep or Replace Analysis Keep Replace Income Increase (Decrease) if replaced Revenues Sale of existing machine $ 0 $ 71,000 Costs Purchase of new machine $ O Variable manufacturing costs $ 180,000 111,000 108,000 Income (loss) $ (180,000) Requiraid A Required >