Walton Company paid $92,000 to purchase a machine on January 1 Year 1 During Year 3. a technological breakthrough resulted in the development of a new machine that costs $104,000. The old machine costs $47.000 per year to operate, but the new machine could be operated for only $6,000 per year. The new machine, which will be available for delivery on January 1 year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $48.000. The expected salvage value of both machines is zero Required Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be replaced? Buy New Keep Old Total avoidable costs Should the machine be replaced