Brazosport Pipe Corporation
the Capital Budgeting Committee of the Brazosport $\text {\underline{ Old machine} }$

Brazosport Pipe Corporation
The capital budgeting committee of the Brazosport Pipe Corporation is evaluating the possibility of replacing its old pipe-bending machine with a more advanced model.Information on the existing machine and the new model follows:
                                                                        $\text {\underline{ Old machine} }$    $\text {\underline{ New machine} }$
$\begin{array}{lll}\text { Original cost } & \$ 200,000 && \$ 400,000 \\\text { Market value now } & 8,000 & \\\text {Market value in year 5 } & 0& & 20,000 \\\text { Anmual cash operating costs } & 40,000&&10,000 \\\text { Remaininglife } & 5\text { yrs } &&5 yrs\end{array}$








Refer to Brazosport Pipe Corporation.If the company buys the new machine and disposes of the existing machine,corporate profit over the five-year life of the new machine will be ____ than the profit that would have been generated had the existing machine been retained for five years.

A) $150,000 lower
B) $170,000 lower
C) $230,000 lower
D) $150,000 higher