Wildhorse Timber Corporation uses a machine that removes the bark from cut timber. The machine is unreliable and results in a significant amount of downtime and excessive labor costs. Management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labor costs. Data are presented below for the two machines: Old Machine New Machine $ 481,000 $ 442.000 Original purchase cost Accumulated depreciation Estimated life 299,000 5 years 5 years It is estimated that the new machine will produce annual cost savings of $ 110,500. The old machine can be sold to a scrap dealer for $ 11,400, Both machines will have a salvage value of zero if operated for the remainder of their useful lives. Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses es (45). Do not leave any field blank Enter O for the amounts) Retain Equipment Replace Equipment Net Income Increase/(Decrease) Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative sign preceding the numbereg.-45 or parentheseses (45). Do not leave any field blank Enter O for the amounts.) Retain Equipment Replace Equipment Net Income Increase/(Decrease) $ $ $ $ The company purchase the new machine