Rory Company has an old machine with a book value of $75,000 and a remaining ve-year useful life. Rory is considering purchasing a new machine at a price of $101,000. Rory can sell its old machine nowfor $83,000. The old machine has variable manufacturing costs of $33,000 per year. The new machine will reduce variable manufacturing costs by $13,200 per year over its five-year useful life. [3} Prepare a keep or replace analysis ofincome effects for the machines. lb} 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. Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) Required B > Rory Company has an old machine with a book value of $?5,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $101,000. Rory can sell its old machine now for $83,000. The old machine has variable manufacturing costs of$33,000 per year. The new machine will reduce variable manufacturing costs by $13200 per year over its five-year useful life. to} 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 E- Should the old machine be replaced? Should the old machine be replaced? :I