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

	Old Equipment	New Equipment
Purchase price	$7,400	$9,400
Accumulated depreciation	$4,700	- 0 -
Annual operating costs	$6,000	$6,800
Remaining useful life	5 years	5 years

If the old equipment is replaced now, it can be sold for $4,200. 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?

		($13,400)
		($9,200)
		$13,400
		$9,200