Exercise 13-18 Asset replacement decision LO 13-5 A machine purchased three years ago for $318,000 has a current book value using straight line depreciation of $190,000; its operating expenses are $40,000 per year. A replacement machine would cost $231,000, have a useful life of ten years, and would require $8,000 per year in operating expenses. It has an expected salvage value of $71,000 after ten years. The current disposal value of the old machine is $79,000, if it is kept 10 more years, its residual value would be $11,000. Required Calculate the total costs in keeping the old machine and purchasing a new machine. Should the old machine be replaced? Keep Old Machine Purchase New Machine Total costs Should the old machine be replaced? Next 7 of 7 0 search 0 1