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Thornton Company paid $93,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a new machine that costs $103,000. The old machine costs $58,000 per year to operate, but the new machine could be operated for only $8,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of five years. The old machine is more durable and is expected to have a remaining useful life of five years. The current market value of the old machine is $33,000. The expected salvage value of both machines is zero. Required Calculate the total avoidable costs in keeping the old machine and buying a new machine Should the machine be replaced? Buy New Keep Old Total avoidable costs Should the machine be replaced? Yes Thornton Freight Company owns a truck that cost $47.000. Currently, the truck's book value is $25,000, and its expected remaining useful life is five years. Thornton has the opportunity to purchase for $23.000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,800 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $11,000. Required Calculate the total relevant costs. Should Thornton replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out? Keep Old Replace With New Total relevant costs Should Thornton replace or continue the old truck? Replace the old truck