1-LN Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Original cost Useful life Current age Remaining useful life Accumulated depreciation Book value Current disposal value in cash) Terminal disposal value (3 years from now) Annual cash operating costs Old Machine $10,700 10 years 7 years 3 years $7,490 $3,210 $2,200 $0 $17,500 New Machine $9,000 3 years O years 3 years Not acquired yet Not acquired yet Not acquired yet $0 $15,500 LN Manufacturing uses straight-line depreciation. a. Using incremental analysis determine whether LN Manufacturing should replace the old machine? (7 point) b. What other factors should management consider in making its decision? (3 point)