A machine that cost $120,000 3 years ago can be sold now for $18,000 . Its market value is expected to be $40,000 and $20,000 1 year and 2 years from now , respectively . Its operating cost was $18,000 for the first 3 years of its life , but the M&O cost is expected to be $23,000 for the next 2 years . A new improved machine that can be purchased for $150,000 will have an economic life of 5 years , and an operating cost of $ 9,000 per year and a salvage value of $32,000 whenever it replaced . At an interest rate of 10 % per year , determine if the presently owned machine should be replaced now, 1 year from now, or 2 years from now.

The annual worth of the existing machine one year from now is $- __, the annual worth of the existing machine two years from now is $__, the annual worth of the new machine is $- __. The presently owned machine should be replaced___.