A machine purchased three years ago for $302,000 has a current book value using straight-line depreciation of $183,000; its operating expenses are $37,000 per year. A replacement machine would cost $232,000, have a useful life of ten years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $77,000 after ten years. The current disposal value of the old machine is $87,000; if it is kept 10 more years, its residual value would be $16,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced?

\begin{tabular}{|l|c|c|} \hline & KeepOldMachine & PurchaseNewMachine \\ \hline Total costs & & \\ \hline Should the old machine be replaced? & \\ \hline \end{tabular}