Based on the data shown below. The question is, should the company choose to purchase new equipment? Or keep the old equipment? Show the computation or calculation as the basis for your answer.

John Wick ours a rice milling machine that was purehared thee yeare ago far $250,000,08 with five yeare pemaining life. It.' preent bosk value is $156,250 and it re-tale value is f 100,00v.0 The company is contemplating replaing the mulhine. misth a new one, which will cut f soowror and hame a fine year mefre life with ma suluage The new machine mill generate the cume pmount of revenue ac the old machine but mill subetantially decease the varinble perating prots. Baced on a normal pales volume of 20, av unite, the pnounl sales anl operating parts of the ald munine and the propesed replacement pre estimates ar frllosus: aine