Exercise 13-18A (Algo) Asset replacement decision LO 13-5 A machine purchased three years ago for $310,000 has a current book value using straight-line depreciation of $194,000; its operating expenses are $37,000 per year. A replacement machine would cost $221,000, have a useful life of nine years, and would require $8,000 per year in operating expenses. It has an expected salvage value of $70,000 after nine years. The current disposal value of the old machine is $78,000; if it is kept 9 more years, its residual value would be $13,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Purchase New Machine Keep Old Machine Total costs Should the old machine be replaced