A machine purchased three years ago for $360,000 has a current book value using straight-line depreciation of $200,000, its operating expenses are $30,000 per year. A replacement machine would cost $240,000, have a useful life of nine years, and would require $13,000 per year in operating expenses. It has an expected salvage value of $65,000 after nine years. The current disposal value of the old machine is $85,000, if it is kept nine more years, its residual value would be $10,000 Required Calculate the total costs in keeping the old machine and purchase a new machine. Keep Old Machine Purchase New Machine Total costs Should the old machine be replaced? O Yes O No