Exercise 9.2. Keep or Replace You have been provided the following keep or replace decision information: Old Machine New Machine Cost $50,000 $100,000 Salvage value $10,000 $ 5,000 Trade-in allowance $ 15,000 Remaining useful life 10 years 10 years Labor costs (annual) $20,000 $ 5,000 Repairs and maintenance $ 5,000 $ 6,000 Utilities $ 1,000 $ 2,000 Interest rate* 6% * Assume installment financing and estimate interest by computing average size of loan over life of machine. Required: Determine whether or not the old machine should be replaced