Sheridan Company has a factory machine with a book value of $$150,000$ and a remaining useful life of $4$ years. A new machine is

available at a cost of $$245,000.$ This machine will have a $4-$year useful life with no salvage value. The new machine will lower annual

variable manufacturing costs from $$590,000$ to $$490,000.$

Prepare an analysis that shows whether Sheridan should retain or replace the old machine. $($If an amount reduces the net income then

enter with a negative sign preceding the number or parenthesis, e$.$g$.-15,000,(15,000).)$