costs. 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: Old Machine New Machine Original purchase cost $367,200 $399,600 Accumulated depreciation 248,400 Estimated life 5 years 5 years It is estimated that the new machine will produce annual cost savings of $91,800. The old machine can be sold to a scrap dealer for $9,200. Both machines will have a salvage value of zero if operated for the remainder of their useful lives. Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) Retain Equipment Replace Equipment $ $ $ Net Income Increase/(Decrease)