Janko Wellspring Incorporated has a pump with a book value of $$28,000$ and a four$-$year remaining life. A new, more efficient pump is available at a cost of $$49,000.$ Janko can receive $$8,400$ for trading in the old pump. The old machine has variable manufacturing costs of $$29,000$ per year. The new pump will reduce variable costs by $$11,300$ per year over its four$-$year life. Should the pump be replaced?

Multiple Choice

Yes, because income will increase by $$4,600$ in total.

Yes, because income will increase by $$4,600$ per year.

No$,$ because the company will be $$4,600$ worse off in total.

No$,$ because income will decrease by $$11,300$ per year.

No$,$ Janko will record a loss of $$16,800$ if they replace the pump.