A machine purchased three years ago for $$304,000$ has a current book value using straight$-$line depreciation of $$186,000$; its

operating expenses are $$32,000$ per year. A replacement machine would cost $$226,000,$ have a useful life of nine years, and would

require $$12,000$ per year in operating expenses. It has an expected salvage value of $$73,000$ after nine years. The current disposal

value of the old machine is $$85,000$; if it is kept $9$ more years, its residual value would be $$15,000.$

Required

Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced?

Answer is complete but not entirely correct.