Concordia Inc manufactures parts for aircrafts repairs. It sells their parts to all major airline in Canada. In addition to that, Concordia Inc is expanding its sales to other countries such as the US and Mexico. Concordia Inc is deciding whether to keep the current manufacturing equipment or buy a new one. The operation manager provides you with the following details: New Equipment Existing Equipment Original cost 150,000 120,000 Useful life (years) 4 8 Age 4 Accumulated depreciation Not applicable 60,000 Book value Not applicable 60,000 Current disposal value (in cash) Not applicable 5,000 Salvage value (end of useful life) 2,000 0 Cash operating cost per year) 18,000 23,000 Concordia Inc uses straight-line depreciation method. Ignore time value of money and income taxes. Should Concordia Inc replace the existing equipment? Explain with calculation. (8 marks)