Nguyen Company is contemplating the replacement of an old machine with a new one. The following information has been gathered:

	Old Machine	New Machine
Purchase price	$5,000	$5,400
Accumulated depreciation	$2,300	- 0 -
Annual operating costs	$5,000	$4,000
Remaining useful life	10 years	10 years

If the old machine is replaced, it can be sold for $2,400. Both the old equipment and new equipment have a useful life of 10 years. What is the net advantage (disadvantage) of replacing the old machine with the new machine?

		$7,000
		($4,600)
		($7,000)
		$4,600