Carrot Company is considering whether to replace a piece of equipment with a newer model. The following data have been collected:

Old EquipmentNew EquipmentPurchase price$4,400$6,400Accumulated depreciation$1,700- 0 -Annual operating costs$7,500$3,800Remaining useful life5 years5 years

If the old equipment is replaced now, it can be sold for $1,200. Both the old equipment and new equipment have a useful life of 5 years.

What is the net advantage (disadvantage) of replacing the old equipment with the new equipment?

($12,100)

$12,100

($13,300)

$13,300