Please explain

Mountain gear has been using the same machines to make its name brand clothing for the last five years A cost efficiency consultant has suggested that production costs may be reduced by purchasing mote technologically advanced machinery The old machines cost the company $100,000 The old machines presently have a book value of $60,000 and a market value of $6,000 They are expected to have a five-year remaining life and zero salvage value The new machines would cost the company $60,000 and have operating expenses of $9,000 a year The new machines are expected to have a five year useful life and no salvage value The operating expenses associated with the old machines are $15,000 a year The new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $5,000 a year Select the true statement The company will be $11,000 better off over the 5 year period if it replaces The old equipment The company will be $20,000 better off over the 5-year period if it keeps the old equipment The company will be $12,000 better off over the 5-year period if it replaces the old equipment The company will be $6 000 better off over the 5-year period if it replaces the old equipment