A machine that cost $$120,0003$ years ago can be sold now for $$52,750.$ Its market value is expected to be $$40,000$ and $$20,0001$

year and $2$ years from now, respectively. Its operating cost was $$18,000$ for the first $3$ years of its life, but the M&O cost is expected to

be $$23,000$ for the next $2$ years. A new improved machine that can be purchased for $$136,750$ will have an economic life of $5$ years,

and an operating cost of $$9,000$ per year, and a salvage value of $$32,000$ whenever it is replaced. At an interest rate of $10\%$ per year,

determine if the presently owned machine should be replaced now, $1$ year from now, or $2$ years from now.

The annual worth of the existing machine one year from now is $$-$

$,$ the annual worth of the existing machine two years

from now is $$-$

$ox,$ and the annual worth of the new machine is $$-$

The presently owned machine should be replaced