A machine purchased three years ago for $305,000 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 $239,000, have a useful life of ten years, and would require $9,000 per year in operating expenses. It has an expected salvage value of $64,000 after ten years. The current disposal value of the old machine is $73,000; if it is kept 10 more years, its residual value would be $13,000. 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. Keep Old Purchase Machine New Machine Total costs $ 370,000 $ 146,000 Should the old machine be Yes replaced