A machine purchased three years ago for $302,000 has a current book value using straight-line depreciation of $184,000; its operating expenses are $36,000 per year. A replacement machine would cost $234,000, have a useful life of nine years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $60,000 after nine years. The current disposal value of the old machine is $70,000; if it is kept 9 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? Keep Old Machine Total costs Should the old machine be replaced? Purchase New Machine

A machine purchased three years ago for $302,000 has a current book value using straight-line depreciation of $184,000; its operating expenses are $36,000 per year. A replacement machine would cost $234,000, have a useful life of nine years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $60,000 after nine years. The current disposal value of the old machine is $70,000; if it is kept 9 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