Express, Inc., is considering replacing equipment. The following data are available:

Old Equipment Replacement Equipment Original

cost $54,000 $43,600

Disposal value now $8,400 0

Disposal value in 5 years 0 0

Annual cash operating costs $9,400 $8,400

What are the total relevant costs of keeping the old equipment?

$10,400.

$47,000.

$8,400.

$54,000.