GBob Company has two investments it is considering: purchasing new equipment or updating its current equipment. GBob has gathered the following information: Current machinery : Original cost $50, 000 Accumulated depreciation 40, 000 Annual operating costs 5 , 000 Current market value 1, 500 Salvage value at the end of five years Cost of overhauling machinery: Cost of overhaul $12, 000 Annual operating costs after overhauling 2, 000 Salvage value at the end of five years New machinery : Cost $56, 000 Annual operating costs 1, 000 Salvage value at the end of five years Required: Should the company buy the new equipment or update the existing equipment? Only use relevant information in your analysis