QUESTION 8 Green Garden uses a machine to make artificial grass. The machine has been breaking down various times lately and it has resulted in a significant amount of downtime and excessive labor costs. The management is considering to replace the machine with a more efficient one which will minimize downtime and excessive labor costs. Data are presented below for the two machines: Original purchase price Accumulated depreciation Book Value Estimated useful life Salvage value Old Machine New Machine RM400,000 335,000 RM65,000 RM445,000 5 years RM8,500 8 years RM10,000 It is estimated that the new machine will produce annual cost savings of RM76,000. Instructions Determine whether the company should purchase the new machine.