An old machine that originally cost $9,500 thus far has accumulated depreciation of $1,900. The remaining useful life is four years, with no salvage value at the end of its useful life. A new machine is now available that costs $8,500, with a useful life of five years and no residual value. The old machine could be sold now for $4,900. The annual cash operating costs for the old machine are $5,000, but for the new machine they would be only $2,500. Gross revenue from the products would be $12,000 annually for either machine. The company should
	keep the old machine to avoid an $8,500 decrease in cash.
	replace the old machine.
	keep the old machine to avoid a $4,900 loss on its disposal.
	keep the old machine to avoid a $2,700 loss on its disposal.