Sheffield Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

	Old Equipment		New Equipment
Purchase price	$292500		$487500
Accumulated depreciation	117000		- 0 -
Annual operating costs	390000		312000

If the old equipment is replaced now, it can be sold for $78000. Both the old equipments remaining useful life and the new equipments useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. For the 5-year period, what is the increase or decrease in net income associated with the new equipment?

$(19500)

$(97500)

$117000`

$78000