A machine purchased three years ago for $317,000 has a current book value using straight-line depreciation of $175,000; its operating expenses are $37,000 per year. A replacement machine would cost $222,000, have a useful life of ten years, and would require $11,000 per year in operating expenses. It has an expected salvage value of $71,000 after ten years. The current disposal value of the old machine is $82,000; if it is kept 10 more years, its residual value would be $10,000 Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Purchase New Machine Koep Old Machine Total costs Should the old machine be replaced