Sandhill Timber Corporation uses a machine that removes the bark from cut timber. The machine is unreliable and results in a significant amount of downtime and excessive labor costs. Management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labor costs. Data are presented below for the two machines: Old Machine New Machine Original purchase cost $408,000 $444,000 Accumulated depreciation 276,000 Estimated life 5 years 5 years It is estimated that the new machine will produce annual cost savings of $102,000. The old machine can be sold to a scrap dealer for $10,400. Both machines will have a salvage value of zero if operated for the remainder of their useful lives. Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) Retain Replace Net Income Equipment Equipment Increase/(Decrease) $ $ $