Transcribed image text: Chudzick Company has a factory machine with a book value of $155.000 and a remaining useful life of 6 years. A new machine is available at a cost of $247.000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $593,500 to $510,000. Prepare an analysis that shows whether Chudzick 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).) Keep Equipment 593500 Replace Equipment 510000 Net Income Increase (Decrease) 83500 $ $ Variable costs 0 New machine cost 247000 -247000 593500 430000 $ 163500 The old factory machine should be replaced