4 A machine purchased three years ago for $318,000 has a current book value using straight-line depreciation of $177,000; its operating expenses are $37,000 per year. A replacement machine would cost $223,000, have a useful life of eleven years, and would require $8,000 per year in operating expenses. It has an expected salvage value of $75,000 after eleven years. The current disposal value of the old machine is $83,000; If it is kept 11 more years, its residual value would be $10,000. eBook Required Calculate the total costs In keeping the old machine and purchase a new machine. Should the old machine be replaced? Hint Purchase New Machine Keep Old Machine Total costs Should the old machine be replaced? Print