Sunland 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: Original purchase cost Accumulated depreciation Estimated life Old Machine New Machine $394,400 $429,200 266,800 5 years 5 years It is estimated that the new machine will produce annual cost savings of $98,600. The old machine can be sold to a scrap dealer for $10,000. 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 eg.-45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) Cost savings New machine cost Proceeds from sale of old machine Net incremental net income. Purchase cost Accumulated depreciation Retain Equipment Replace Equipment Net Income Increase/(Decrease)