=+A company is considering replacing an old piece ofmachinery, which cost $560,000 and has

$320,000 of accumulated depreciation to date, with a new machine that costs $460,000. The old equipment could be sold for $78,000. The variable production costs associated with the old machine are estimated to be $170,000 for eight years. The variable production costs for the new machine are estimated to be $110,000 for eight years.