FHI is considering the purchase of a new machine. The old machine cost the company $20,000. The old machine presently have a book value of $12,000 and a market value of $1200 and a salvage value of $200 after 5 years. The new machine would cost the company $10,000 and have operating expenses of $800 a year. The new machine is expected to have a 5-year useful life and no salvage. The operating expenses associated with the old machine is $3,000 a year.

	a.	Replace the equipment will add $10,000 to total profitability
	b.	Keep the old equipment will add $2,000 to total profitability
	c.	Keep the old equipment will add $10,000 to total profitability
	d.	Replace the equipment will add $2,000 to total profitability