Beltz company is considering the replacement of a machine that is presently used in the production of its product. The following data are available

Old Equipment Replacement Equip

Original cost $100,000 $60,000

Useful life in yrs 15 7

current age in yrs 8 0

book value $45,000 -

Disposal Value $28,000 -

Disposal Value 7yrs 0 0

Annaul cash operating $12,000 $9,000

Required

Ignoring income taxes, indicate the best alternative for Beltz Co. Provide computations to support your decision.