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What is the correct answer? I keep getting both numbers every time I attempt this problem. Munoz Company paid $98,000 to purchase a machine on

image text in transcribedWhat is the correct answer? I keep getting both numbers every time I attempt this problem.

Munoz Company paid $98,000 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 $115,000. The old machine costs $62,000 per year to operate, but the new machine could be operated for only $11,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of five years. The old machine is more durable and is expected to have a remaining useful life of five years. The current market value of the old machine is $46,000. 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? X Answer is complete but not entirely correct. Keep Old $ Total avoidable costs 310,000 Should the machine be replaced? Buy New $ 124,000 Yes

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