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

	Old Machine		New Machine
Price	$240000		$480000
Accumulated Depreciation	72000		-0-
Remaining useful life	10 years		-0-
Useful life	-0-		10 years
Annual operating costs	$195000		$144000

If the old machine is replaced, it can be sold for $19200. 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

$19500

$(4800)

$(48000)

$49200