A machine purchased three years ago for $308,000 has a current book value using straight-line depreciation of $187,000; its operating expenses are $33,000 per year. A replacement machine would cost $220,000, have a useful life of nine years, and would require $9,000 per year in operating expenses. It has an expected salvage value of $71,000 after nine years. The current disposal value of the old machine is $80,000; 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 \ Replace with New

Total Relevant Cost: _________ ______________