The Livie Corporation is considering replacing a machine. The following information is available:

	Old Machine	New Machine
Original cost	$65,000	$40,000
Useful life	10	5
Current age in years	5	0
Book value	$20,000
Current salvage value	$9,660
Salvage value in 5 years	$4,600	$4,250
Annual operating costs	$10,500	$6,500

The incremental profit (loss) associated with purchasing the new machine is (incremental losses are indicated by a negative (-) sign):

Multiple Choice

• -10,340

• -14,940

• -11,150

• -26,690

• -10,690