1. Company X is considering replacing a machine. The following data are available: Replacement Old Machine Machine Original cost $90,000 $70,000 Useful life in years 10 5 Current age in years 5 0 Book value $50,000 not acquired yet Disposal value now $16,000 not acquired yet Disposal value in 5 years 0 0 Annual cash operating costs $14,000 $8,000 Company X uses straight-line depreciation, Ignore the time value of money and income taxes. Should Company X replace the old machine? What is the difference between keeping the old machine and replacing the old machine?