A machine purchased three years ago for $720,000 has a current book value using straight-line depreciation of $400,000, its operating expenses are $60.000 per year. A replacement machine would cost $480,000, have a useful life of nine years, and would require $26,000 per year in operating expenses. It has an expected salvage value of $130,000 after nine years. The current disposal value of the old machine is $170,000, if it is kept 9 more years, its residual value would be $20,000 Required Calculate the total costs in keeping the old machine and purchasing a new machine. Should the old machine be replaced? Keep Old Machine Purchase New Machine Total costs Should the old machine be replaced