CALCULATOR FULL SCREEN PRINTER VERSION BACK NEM Exercise 194 Harris Timber Corporation uses a machine that removes the bark from cuttimber. The machines unreliable and results in a significant amount of downtime and excessive labor costs. The management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labor costs. Data are presented below for the two machines: New Machine $370,000 Original purchase cost Accumulated depreciation depreciation Tede Old Machine $340,000 250.000 5 years 5 years It is estimated that the new machine will produce annual cost savings of $85,000. The old machine can be sold to a scrap dealer for $8,000. Both machines will have a salvage value of zero coerbed for the remainder of their lives Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative in preceding the number .g. -45 or parentheses .. (45). Do not leave any field blank. Enter for the amounts) Retain Equipment Replace Equipment Net Income Increase/Decrease) The company 5 purchase the new machine