Fanning Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows: Existing Equipment Cost $105,000 Operating expenses* 113,000 Salvage value 25,000 Market value 53,000 Book value 33,000 Remaining useful life Replacement Equipment Cost $111,000 Operating expenses 97,000 Salvage value 17,000 Useful life 7 years 7 years *The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment Required Calculate the total relevant cost of existing equipment and the potential replacement equipments. Should the equipment be replaced? New Old Total cost Should the equipment be replaced