Vaughn Company has a factory machine with a book value of $$158,000$ and a remaining useful life

of $6$ years. A new machine is available at a cost of $$245,000.$ This machine will have a $6-$year useful

life with no salvage value. The new machine will lower annual variable manufacturing costs from

$$591,500$ to $$496,000.$

Prepare an analysis that shows whether Vaughn should retain or replace the old machine. $($If an

amount reducesthe net income then enter with a negative sign preceding the number or parenthesis, e$.$g$.$

$-15,000,(15,000).)$

Keep

Equipment

Replace

Equipment

NetIncom

Increase

$($Decrease

Variable

costs

$ $ $

New

machine

cost

$ $ $

The old factory machine should be $.$