10 Finch Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment Replacement Equipment Cost Operating expenses* $101,000 105,000 Cost Operating expenses* Salvage value 02:46:02 Market value 22,000 52,000 Salvage value Useful life Book value 35,000 Remaining useful life 10 years $121,000 108,000 13,000 10 years *The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment. Required Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced? Old Total cost Should the equipment be replaced? New