Trainor Machines LLC makes specialized machine parts for a number of clients, all of whom are major manufacturers. Trainor is considering replacing one of the special machines used in the production of a specific product; this machine was purchased eight years ago for $619,500 and has seven years of useful life remaining. The new machine, costing $351,000, is expected to have a useful life equal to the remaining useful life of the current machine and a zero disposal value. Trainor incurs annual operating costs equal to $72,000 with the existing equipment, but the new equipment is expected to result in operating costs equal to $36,000. Trainor expects to incur additional maintenance expense on the existing machine over the remainder of its seven year life as follows: $3,000 per year in the first three years, $4,000 per year in years 4 and 5, and $5,000 per year in years 6 and 7. Despite the significant reduction in annual operating costs, as well as the increase in maintenance costs, the controller is hesitant because the machine is a specialized piece of equipment and due to the limited second-hand market for such a machine the current one could only be sold for 50% of its current book value of $289,100, resulting in a loss on disposal of $144,550. Required: Ignoring income taxes and time value of money, prepare a quantitative analysis of the best course of action for Trainor, with regard to the two alternatives. Nel savings from buying new machine Which is the best course of action for Trainor Machines LLC, with regard to the two alternatives? O Keep the existing machine O Replace the existing machine with the new machine