question 12 (verify please)

Rory Company has a machine with a book value of $111.000 and a remaining five-year useful life. A new machine is available at a cost of $113,500, and Rory can also receive $78,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Reduction in variable manufacturing costs Cost of new machine 97,500 (35,500) Incremental incomo (incremental cost) $ 62,000 Should the machine be replaced? Yes