Ventura Trucking Co. is considering the replacement of an old refrigerator trailer with a new one. The following data is provided:

Old TrailerNew Trailer

Book Value $40,000 n/a

New Trailer Purchase Cost n/a $220,000

Annual operating costs$63,000 per yr.$40,000 per yr.

Useful Life9 years9 years

Residual Value zero zero

If the old trailer is replaced, it can be sold for $19,000.

Calculate the increase or decrease in Net Income for nineyears if the old trailer is replaced by the new trailer.