The old machine was purchased three years ago for $$309,000$ and has a current Dook value u$$uly sualy $.................$ $$178,000.$

The old machine incurs operating expenses of $$35,000$ per year.

The current disposal value of the old machine is $$71,000$; if it is kept nine more years, its remaining value would be $$10,000.$

The replacement machine would cost $$220,000$ and have a useful life of nine years.

The replacement machine has an expected salvage value of $$60,000$ after nine years.

The replacement machin$$ would require $$11,000$ per year in operating expenses.

Required

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