A machine purchased three years ago for $317000 has a current book value using straight-line depreciation of S185,000, its operating expenses are $37,000 per year. A replacement machine would cost $225,000, have a useful life of nine years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $61,000 after nine years. The current disposal value of the old machine is $71,000, if it is kept 9 mole years, its residual value would be $11,000, Required Calculate the total costs in keeping the old machine and purchase a new machine Should the old machine be replaced? Purchase New Machine Keep Old Machine Total costs Should the old machine be replaced