Dune Company is replacing an old machine with a new, more efficient machine. Dune purchased the old machine for $600,000 and there is $180,000 of accumulated depreciation recorded on the machine. It has a 10-year remaining useful life and it costs $480,000 per year to operate. The new machine, with a purchase price of $1,200,000 would also have a 10-year useful life and its annual operating costs would be $361,200. If the old machine is replaced, it can be sold for $48,000. What is the net advantage (disadvantage) of replacing the old machine?

Select answer from the options below

$48,000

$(120,000)

$36,000

$(12,000)