Starling Co. is considering disposing of a machine with a book value of $12500

Starling Co. is considering disposing of a machine with a book value of $12500 and estimated remaining life of five years. The old machine can be sold for
$1500. A new high-speed machine can be purchased at a cost of $25000. It will have a useful life of five years and has no residual value. It is estimated
that the annual variable manufacturing costs will be reduced from $26000 to $23500 if the new machine is purchased. The total net differential increase or
decrease in cost for the new equipment for the entire five years is

A.) decrease in $11000

B.) decrease of $15000

C.) increase of $11000

D.) increase of $15000