Lulachee Inc. has been manufacturing its tennis clothing with the same equipment for five years. An advisor has suggested that production costs may be reduced by purchasing more advanced machinery. The old machines cost the company $230,000. The old machines presently have a book value of $123,000 and a market value of $15,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $130,000 and have operating expenses of $18,000