Old Equipment New Equipment Purchase price $225000 $383000 Accumulated depreciation 114000 -0- Annual operating costs 306000 245000 If the old equipment is replaced now, it can be sold for $65000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is $65000 $(13000) $(81000) $114000`