3. On January 1, 2017 Tranko Company purchased a new stitching machine for S100,000. The machine was expected to last 4 years, at which time it would be worthless. On 1/1/2018, a new model of the stitching machine came out and Tranko is trving to decide whether or not to trade in the old model for the new one. Either model will be used for the next three years. The following additional information is available: Purchase price Useful life Book value Trade-in value now Disposal value at end of Old mode $100,000 4 years $60,000 $30,000 New model $150,000 3 years Useful life Annual operating expense $0 $80,000 $5,000 S20,000 What is the total net operating cost for each model over the next three vears? Should Tranko keep the old model or trade it in for the new model? Ignore the time value of money