John Aggie Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

	old equipment	new equipment
purchase price	$150,000	$150,000
Accumulated depreciation	$100,000	$0
Annual operating costs	$70,000	$45,000

If the old equipment is replaced now it can be sold for $15,000 . and the new equipment useful life is five years. the company uses straight-line depreciation with a zero salvage value for all of its assets. what is the net increase Or decrease in the cost of replacing the old equipment with the new equipment? Show your calculations.