Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered:

	Old Machine	New Machine
Price	$344000	$680000
Accumulated Depreciation	103200	-0-
Remaining useful life	10 years	-0-
Useful life	-0-	10 years
Annual operating costs	$275200	$206400

If the old machine is replaced, it can be sold for $32000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is

$68800

$40000

$336000

$36800