Janko Wellspring Inc. has a pump with a book value of $44,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $65,000. Janko can also receive $10,000 for trading in the old pump. The new pump will reduce variable costs by $14,000 per year over its four-year life. Should the pump be replaced?

• No, Janko will record a loss of $20,000 if they replace the pump.

• Yes, because income will increase by $1,000 per year.

• No, because the company will be $1,000 worse off in total.

• Yes, because income will increase by $1,000 in total.

• No, because income will decrease by $14,000 per year.