Sputnik Manufacturing is faced with the issue of keeping or replacing an old machine. The following information will be used in its decision making: Old machine New machine Original cost $20,000 $14,000 Useful life 5 years 3 years Current age 2 years 0 years Remaining useful life 3 years 3 years Accumulated depreciation $8,000 Not acquired yet Book value $12,000 Not acquired yet Current disposal value $3,000 Not acquired yet Salvage value (end of life) $0 $0 Annual operating cost $10,000 $8,000 Sputnik uses straight-line depreciation method. Required Should the company replace the old machine? Why or why not?