Vintage Inc. owns an old piece of equipment that originally cost $1,000,000 and has accumulated depreciation to date on the old piece of equipment of $700,000. The old piece of equipment has a remaining useful life of 5 years. The old piece of equipment has an annual operating cost of $100,000 and has a salvage value of $60.000 There is a new model of the machine that is much more efficient. In fact, the salesperson said it practically pays for itself. The new model has a cost of $200,00 but reduces the annual operating costs to $50,000. Should the company keep or replace the equipment and why? The comapny should replace and save $110,000 The company should KEEP the old equipment considering its book value. The company should KEEP the old equipment and save $240,000 The company should replace since the net dollars are exactly the same. At least the machine would be new