Marigold Corp. 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	$132000	$224000
Accumulated depreciation	52800	- 0 -
Annual operating costs	156000	156000

If the old equipment is replaced now, it can be sold for $36400. Both the old equipments remaining useful life and the new equipments useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old equipment with the new equipment is

$36400

$52800

$(82600)

$(45000)