Acme Company has some outdated equipment that must be replaced or overhauled. New equipment would cost $$400,000,$ have a useful life of $10$ years, and a salvage value of $$80,000.$ The annual operating costs of the new equipment would be $$90,000$ per year. Acme can sell the old equipment for $$70,000.$ Acme$$s other option is to overhaul the old equipment at a cost of $$230,000.$ The refurbished equipment would have a useful life of $10$ years and a salvage value of $$30,000.$ The annual operating costs of the refurbished equipment would be $$110,000$ per year. Acme uses a $10\%$ discount rate to make capital budgeting decisions. Based on a net present value analysis, what is the financial advantage or disadvantage of overhauling rather than replacing the old equipment?

Group of answer choices

$$22,200$ advantage

$$42,200$ disadvantage

$$22,200$ disadvantage

$$42,200$ advantage