1-LN Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: Old Machine $10,700 10 years 7 years 3 years 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 New Machine $9,000 3 years 0 years 3 years Not acquired yet Not acquired yet Not acquired yet SO $15,500 $7,490 $3,210 $2,200 $0 $17,500 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)