QS $25-15($Algo$)$ Keep or replace LO P$5$

Rory Company has an old machine with a book value of $\backslash (\backslash$$ $77,000\backslash )$ and a remaining five$-$year useful life. Rory is considering purchasing a new machine at a price of $\backslash (\backslash$$ $104,000\backslash ).$ Rory can sell its old machine now for $\backslash (\backslash$$ $76,000\backslash ).$ The old machine has variable manufacturing costs of $\backslash (\backslash$$ $32,000\backslash )$ per year. The new machine will reduce variable manufacturing costs by $\backslash (\backslash$$ $12,800\backslash )$ per year over its five$-$year useful life.

$($a$)$ Prepare a keep or replace analysis of income effects for the machines.

$($b$)$ Should the old machine be replaced?

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Prepare a keep or replace analysis of income effects for the machines.