Applying Differential Analysis to Equipment Replacement Decision excess space to a nearby related company for $$3,500$ per month for the next two years. $($Rental beyond that two year$-$period is not certain.$)$

REQUIRED continuing with the current process. Calculate the net advantage or disadvantage of purchasing the new machine.

Note: enter all numbers as positive numbers, do NOT use a negative sign.

TaylorMade purchasing the machine is a net

of $

b$.$ Suppose the cost of the machine is expected to increase by $5\%.$ If the price increase is in effect, how does your answer to part a change?

Note: enter all numbers as positive numbers, do NOT use a negative sign.

TaylorMade purchasing the machine is a net

of $