Avaya Company is thinking to replace a three year old loader with a new one that is more efficient. The following information was provided by the Company: List price New loader Annual operating expenses Expected life in years Original cost Remaining book value Disposal value now $17,000 55,000 1 Old loader $120,000 35,000 8,000 78,000 1 Annual variable expenses Remaining life in years Should the company replace or keep the old loader (Show your calculations)