Tesla management are trying to decide whether to keep an older piece of machinery or buy a replacement. Management was presented with the following information to assist in their decision:

A machine purchased three years ago for $$313,000$ has a current book value using straight$-$line depreciation of $$189,000$; its operating expenses are $$39,000$ per year. A replacement machine would cost $$237,000,$ have a useful life of ten y$$rs$,$ and would require $$9,000$ per year in operating expenses. It has an expected salvage value of $$76,000$ after ten years. The current disposal value of the old machine is $$85,000$; if it is kept ten more years, its residual value would be $$17,000.$

Required

Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced?

$\backslash$table$[[,\backslash$table$[[$Keep Old$],[$Machine$]],\backslash$table$[[$Purchase New$],[$Machine$]]],[$Total costs,,$],[$Should the old machine be replaced?,$]]$