Laguna Manufacturing is considering replacing a piece of equipment with a newer, more efficient model. The old equipment was purchased several years ago for $112,500 and has annual operating costs of $150,000, accumulated depreciation of $45,000, and a 5-year remaining useful life. The new equipment being considered costs $187,500, has annual operating costs of $120,000, and has a 5-year useful life. If new equipment is purchased, the old equipment could be sold for $30,000. The new equipment does not have a salvage value. Should Laguna purchase the new equipment? Make your calculations for a five year period. Select answer from the options below Yes, because doing so will increase the company's net income by $45,000. No, because doing so will cause the company net income to decrease by $37,500. No, because doing so will cause the company's net income to decrease by $7,500. Yes, because doing so will cause the company's net income to increase by $30,000