Munoz Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows:

Existing Equipment				Replacement Equipment
Cost	$	113,000		Cost	$	107,000
Operating expenses*		118,000		Operating expenses*		113,000
Salvage value		28,000		Salvage value		18,000
Market value		46,000		Useful life		9	years
Book value		34,000
Remaining useful life		9	years

^*The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment.

Required

Calculate the total relevant cost of existing equipment and the potential replacement equipments.