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 $$305,000$ has a current book value using straight$-$line depreciation of $$185,000$; its operating expenses are $$30,000$ per year. A replacement machine would cost $$233,000,$ have a useful life of ten years, and would require $$10,000$ per year in operating expenses. It has an expected salvage value of $$77,000$ after ten years. The current disposal value of the old machine is $$87,000$; if it is kept ten more years, its residual value would be $$12,000.$

Required

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

Answer is complete but not entirely correct.

$\backslash$table$[[,,\backslash$table$[[$Seep Old$],[$Machine$]],\backslash$table$[[$Purchase$],[$New Machine$]]],[$Total costs,$$,495,000,256,000],[\backslash$table$[[$Should the old machine$],[$replaced$?]],,,$Yes $\frac{O}{?}$