Rooney Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment Cost $111,000 Operating expenses* 113,000 Salvage value 28,000 Market value 47,000 Book value 35,000 Remaining useful life 5 years Replacement Equipment Cost $119,000 Operating expenses 107,000 Salvage value 13,000 Useful life 5 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 equipment. Should the equipment be replaced? Old New Total cost Should the equipment be replaced