You are the Production Manager at Nortel Communications. The Vice-President of Operations has asked you to prepare an analysis to determine if Nortel should be replacing one of the robotic welders used in the production assembly line; this robotic welder was purchased eight years ago for $640,500 and has seven years of useful life remaining. The new welder, costing $360,000, is expected to have a useful life equal to the remaining useful life of the current welder and a zero disposal value. Nortel Communications incurs annual operating costs equal to $71,000 with the existing equipment, but a new robotic welder is expected to result in operating costs equal to $35,500. Nortel expects to incur additional maintenance expense on the existing welder over the remainder of its seven-year life as follows: $4,000 per year in the first three years. $6,000 per year in years 4 and 5, and $8,000 per year in years 6 and 7 Because the existing robotic welder is a highly customized piece of equipment and, due to the limited second-hand market for such a unique machine, you are hesitant to consider this option to purchase a new robotic welder because the current one could only be sold for 50% of its current book value of $298,900, resulting in a loss on disposal of $149,450 Required: Ignoring income taxes and time value of money, prepare a quantitative analysis of the best course of action for the compnay, with regard to the two alternatives. Not savings from buying new machine