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

	Old Machine		New Machine
Price	$330000		$660000
Accumulated Depreciation	99000		-0-
Remaining useful life	10 years		-0-
Useful life	-0-		10 years
Annual operating costs	$265000		$198000

If the old machine is replaced, it can be sold for $26400. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is

$36400

$(66000)

$26500

$(6600)