A machine purchased three years ago for $301,000 has a current book value using straight-line depreciation of $185,000, its operating expenses are $39,000 per year. A replacement machine would cost $235,000, have a useful life of ten years, and would require $11.000 per year in operating expenses. It has an expected salvage value of $63,000 after ten years. The current disposal value of the old machine is $74.000, if it is kept 10 more years, its residual value would be $11,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Purchase New Machine Keep old Machine Total costs Should the old machine be replaced