Finch Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment Replacement Equipment Cost $114,000 Cost Operating expenses 113,000 Operating expenses* Salvage value 22,000 Salvage value Market value 51,000 Useful life Book value 31,000 Remaining useful life 8 years $118,000 112,000 11,000 8 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 equipment. Should the equipment be replaced? Old New Total cost Should the equipment be replaced?