A machine purchased three years ago for \($200,000\) has a current book value using straight-line depreciation of \($120,000\) ; its operating expenses are \($30,000\) per year. A replacement machine would cost \($250,000\) , have a useful life of nine years, and would require \($14,000\) per year in operating expenses. It has an expected salvage value of \($66,000\) after nine years. The current disposal value of the old machine is \($60,000\) ; if it is kept nine more years, its residual value would be \($10,000\) .

Required:
Based on this information, should the old machine be replaced? Support your answer.