Adams Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows.Existing EquipmentReplacement EquipmentHistorical cost$ $104,000$ Market price$ $107,000$ Operating expenses$*110,000$ Operating expenses$*96,000$ Salvage value$29,000$ Salvage value$17,000$ Market value$49,000$ Useful life$8$yearsBook value$33,000$ Remaining useful life$8$years $*$The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment.RequiredCalculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced?