Santosh Plastics Inc. purchased a new machine one year ago at a cost of $96,000. Although the machine operates well and has five more years of operating life, the president of Santosh Plastics is wondering if the company should replace it with a new electronic machine that has just come on the market. The new machine costs $144,000 and Is expected to slash the current annual operating costs of $67,200 by two-thirds. The new machine is expected to last for five years, with zero salvage value at the end of five years. The current machine can be sold for $16,000 If the company decides to buy the new machine. The company uses straight-IIne depreciation. In trying to decide whether to purchase the new machine, the president has prepared the following analysis: "Even though the new machine looks good," sald the president, "we can't get rld of that old machine If it means taking a huge loss o It. We'll have to use the old machine for at least a few more years." Sales are expected to be $336,000 per year, and selling and administrative expenses are expected to be $201,600 per year, regardless of which machine is used. Required: 1. Prepare a comparatlve income statement covering the next five years, assuming: 6. The new machine is not purchased. b. The new machine is purchased. (Negatlve amounts should be Indlcated by a minus sign. Do not round intermedlate calculations.) 2. Compute the net advantage of purchasing the new machine using only relevant costs in your analysIs. (Do not round Intermedlate calculations.) 3. What is the minimum saving in annual operating costs that must be achleved in order for the president to consider buying the new machine