DJ Woodwork is considering the replacement of its painting booth.

Here is the information supplied by the controller

Old Paint Booth New Paint Booth

Original cost $42,000 $35,000

Useful life in years 7 5

Current age in years 2 0

Book value $30,000 -

Disposal value now $15,000 -

Annual cash operating $6,000 $3,000

costs

Given the above information, make a well written recommendation to the owners of DJ Woodworking. Show which costs are relevant and tell them what benefit of the new booth would be, (or not be).