Exercise 6-18A (Algo) Asset replacement decision LO 6-5 Tesla management are trying to decide whether to keep an older piece of machinery or buy a replacement. Management was presented with the following information to assist in their decision: - The old machine was purchased three years ago for $310,000 and has a current book value using straight-line depreciation of $193,000. - The old machine incurs operating expenses of $39,000 per year. - The current disposal value of the old machine is $84,000; if it is kept nine more years, its remaining value would be $18,000. - The replacement machine would cost $222,000 and have a useful life of nine years. - The replacement machine has an expected salvage value of $72,000 after nine years. - The replacement machine would require $12,000 per year in operating expenses. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced