has variable manufacturing costs of $$27,000$ per year. The new pump will reduce variable costs by $$11,100$ per year over its four$-$year life. Should the pump be replaced?

Multiple Choice

No$,$ because the company will be $$5,600$ worse off in total.

Yes, because income will $-$increase by $$5,600$ in total.

No$,$ Janko will record a loss of $$16,400$ if they replace the pump.

No$,$ because income will decrease by $$11,100$ per year.

Yes, because income will increase by $$5,600$ per year.