Esposito SpA has a factory machine with a book value of €90,000 and a remaining useful life of 5 years. It can be sold for €30,000. A new machine is available at a cost of €400,000. This machine will have a 5-year useful life with no residual value. The new machine will lower annual variable manufacturing costs from €600,000 to €500,000. Prepare an analysis showing whether the old machine should be retained or replaced.