The Lancaster Corporation purchased a piece of equipment three years ago for $250,000. It has an asset depreciation range of 8 years. The old equipment can be sold for $97,920. A new piece of equipment can be purchased for $360,000. It also has an ADR of 8 years. Assume the old and new equipment would provide the following operating gains (or losses) over the next 6 years. Year New Equipment Old Equipment 1 $100,000 $36,000 2 $86,000 $26,000 3 $80,000 $19,000 4 $72,000 $18,000 5 $62,000 $16,000 6 $43,000 ($9000) The firm has a 36% tax rate and a 9% cost of capital. Should the new equipment be purchased to replace the old equipment?