Express, Inc., is considering replacing equipment. The following data are available:

Old Equipment Replacement Equipment

Original cost $41,000 $31,900

Disposal value now $7,100 0

Disposal value in 5 years 0 0

Annual cash operating costs $8,100 $7,100

What are the total relevant costs of keeping the old equipment?

$7,100.

$41,000.

$9,100.

$40,500.