RW Engineering has a machine with four years remaining useful life. The machine incurs $$62,000$ fixed and $$43,000$ in variable costs yearly. RW is considering a replacement that costs $$102,000$ and has a four$-$year useful life. It will incur $$49,000$ fixed and $$28,000$ variable costs each year. If the old machine has no sale or scrap value, what should RW do$?$ Why?

RW should purchase the new machine because it will realize a $$10,000$ increase in net income if it purchases the new machine.

RW should purchase the new machine because it will realize an $$84,000$ increase in net income if it purchases the new machine.

RW should retain the old machine because the company will sustain a $$3,000$ decrease in net income if it purchases the new

machine.

RW should retain the old machine because it will sustain a $$105,000$ decrease in net income if it purchases the new

machine.