1 Exercise 13-18 Asset replacement decision LO 13-5 3.33 points A machine purchased three years ago for $303,000 has a current book value using straight-line depreciation of $189,000; its operating expenses are $39,000 per year. A replacement machine would cost $230,000, have a useful life of eleven years, and would require $8,000 per year in operating expenses. It has an expected salvage value of $66,000 after eleven years. The current disposal value of the old machine is $74,000; if it is kept 11 more years, its residual value would be $16,000. eBook Required Calculate the total costs in keeping the old machine and purchasing a new machine. Should the old machine be replaced? Print Keep Old Purchase New Machine Machine Total costs Should the old machine be replaced? References Yes