9 Exercise 13-20 Asset replacement decision LO 13-5 Baird Company paid $94,000 to purchase a machine on January 1. 2017 During 2019, a technological breakthrough resulted in the development of a new machine that costs $112,000 The old machine costs $63,000 per year to operate, but the new machine could be operated for only $11,000 per year The new machine, which will be available for delivery on January 1, 2019, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of five years. The current market value of the old machine is $37000. The expected salvage value of both machines is zero 4. points eBook Required Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be replaced? Ask Keep Old Buy New Total avoidable costs Print Should the machine be replaced? References