Help Save & Exit Sub Check my work Exercise 13-18 Asset replacement decision LO 13-5 A machine purchased three years ago for $315,000 has a current book value using straight-line depreciation of $181,000; its operating expenses are $31,000 per year. A replacement machine would cost $226,000, have a useful life of eleven years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $70,000 after eleven years. The current disposal value of the old machine is $80,000; if it is kept 11 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? Purchase New Machine Keep Old Machine Total costs Should the old machine be replaced? o e Check my wo Exercise 13-18 Asset replacement decision LO 13-5 A machine purchased three years ago for $315,000 has a current book value using straight-line depreciation of $181,000; its operating expenses are $31.000 per year. A replacement machine would cost $226,000, have a useful life of eleven years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $70,000 after eleven years. The current disposal value of the old machine is $80,000; if it is kept 11 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? Purchase New Machine Keep Old Machine Total costs Should the old machine be replaced?