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 $$66,000.$ The old machine has variable manufacturing costs of $$38,000$ per year. The new machine will reduce variable manufacturing costs by $$15,200$ per year over its five$-$year useful life.

$($b$)$ Should the old or replace analysis of income effects for the machines.

$($a$)$ Prepare a keep or replace analysis $($b$)$ Should the old machine be replaced?

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Required $A$

Prepare a keep or replace analysis of income effects for the machines.

Complete this question by entering your answers in the tribs below.

Required $A$

Required B

Should the old machine be replaced?

Should the old machine be replaced?M