Gray Lake Company is considering the replacement of a machine that is presently used in production. The following data are available:

Old Machine New Machine

Original cost $57,000 $35,000

Useful life in years 17 5

Current age in years 12 0

Book value $39,000 -

Disposal value now $8,000 -

Disposal value in 5 years 0 0

Annual cash operating costs $7,000 $4,000

Adding all five years together, the total relevant costs to consider if the old machine is not replaced is ________.

A) $22,000

B) $31,000

C) $35,000

D) $39,000