Janko Wellspring Incorporated has a pump with a book value of $$33,000$ and a four$-$year remaining life. A new, more efficient pump is available at a cost of $$54,000.$ Janko can receive $$8,900$ for trading in the old pump. The old machine has variable manufacturing costs of $$34,000$ per year. The new pump will reduce variable costs by $$11,800$ per year over its four$-$year life. Should the pump be replaced?

Multiple Choice

No$,$ Janko will record a loss of $$17,800$ if they replace the pump.

Yes, because income will increase by $$2,100$ in total.

No$,$ because the company will be $$2,100$ worse off in total.

Yes, because income will increase by $$2,100$ per year.

No$,$ because income will decrease by $$11,800$ per year.