Ch.23 - Quick Studies Instructions I help Question 10 (of 10) Save & Exit Submit value: 5.00 points Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a cost of $112,500, and Rory can also receive $60,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $13,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Reduction in variable manufacturing costs $ Cash received from trade in of old machine Cost of new machine 70,000 60,000 Incremental income (incremental cost) $ 130,000 Should the machine be replaced