Rory Company has an old machine with a book value of $75,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $90,000. Rory can sell its old machine now for $60,000. The old machine has variable manufacturing costs of $33,000 per year. The new machine will reduce variable manufacturing costs by $13,000 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 Revenues Sale of existing machine Replace Income Increase (Decrease) if replaced 0 $ 60,000 Costs Purchase of new machine 0 Variable manufacturing costs $ 165,000 (90,000) 100,000 Income (loss) $ (165,000) < Required A Required B