3. Jared Co. is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $36,000 per year for this machine. Information on two alternative replacement machines follows. Should Jared Co. keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Jared purchase?
			Machine A	Machine B
		Cost	115,000	125,000
		Variable costs per year	19,000	15,000