Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered:

	Old Machine	New Machine
Price	$326000	$626000
Accumulated Depreciation	97800	-0-
Remaining useful life	10 years	-0-
Useful life	-0-	10 years
Annual operating costs	$260800	$199200

If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is

$14000

$26080

$(62600)

$(6260)