As the Controller at your company, the CFO has asked you to evaluate whether a piece of factory equipment should be replaced or kept. The old factory equipment was purchased four years ago for $925,000. Over the last four years, your company has allocated depreciation based on the straight-line method. The expected salvage value is $35,000. The current book value of the factory equipment is $620,000. The operating expenses total approximately $40,000 a year. It is estimated that the residual value (market value) of the old machine is $355,000. The CFO is contemplating whether to replace the piece of factory equipment. The replacement factory equipment would