Sprockets Corporation is thinking about replacing a piece of manufacturing equipment with a remaining useful life of six years and a $0 salvage value. The book value of the equipment is $55,000, and the machine could be sold in its current condition for $29,000. The new machine would cost $125,000 and would have no salvage value at the end of its six-year useful life. With the new machine, Sprockets annual variable operating costs would drop from $78,000 to $65,000. Given these data, Sprockets would ________ over the next six years if it purchases the new machine.

• A : increase its total net income by $7,000

• B : increase its total net income by $22,000

• C : decrease its total net income by $47,000

• D : decrease its total net income by $18,000

I would really appreciate a step by step answer with any formulas you use!