Green Company is considering the replacement of equipment used in operations.The following data are available:

Old EquipmentNew Equipment

Original cost$210,000$40,000

Useful life in years127

Current age in years50

Book value$65,000-

Disposal value now$30,000-

Disposal value in 7 years00

Annual cash operating costs$10,000$9,000

Required:

A) what is the cost comparison for replacing the old equipment.Use only relevant items and add the items together for the next 7 years.

B) Should the old equipment be replaced?