Kendra Company is considering replacing an old machine. The old machine was purchased for $100,000 and has a book value of $40,000 and should last four more years with no salvage value. The company believes that it could currently sell the old machine for $20,000. The new machine cost $80,000 and will have a 4-year life and a $10,000 salvage value. Currently, it costs $20,100 annually to operate the old machine. The new machine is more efficient and should reduce operating cost by 50%. Based on quantitative analysis, should Kendra Company replace the old machine?